Samsung Electronics Co. Ltd. is in talks to take advantage of the current political environment and make some major changes at the level of its production domain. Thus, the company is going to build a new home appliances factory right on U.S. soil. The construction is projected to cost a total of $300 million, and the new facility will be populated with 500 jobs. These positions will not be new, but they will be moved from a Mexico factory.
The South Korea-based tech company is determined to invest $300 million in a new home appliances factory that will be located somewhere in the U.S. Samsung is already negotiating terms with a total of five states. The Wall Street Journal didn’t reveal its sources. However, according to them, the company plans to shift production of oven ranges from its Mexico facility to the United States. The new location is going to welcome around 500 new employees.
The tech giant stated that it would not rush into any decision. This is a major project. Like any other such business move, the company is going to take as much time as needed to measure all benefits and disadvantages. In the end, it has to make sure that this is the right direction for the future of the company. A spokesperson on behalf of Samsung didn’t comment on this news. Nonetheless, the official admitted that the company started considering this proposal at the beginning of last fall.
According to the Wall Street Journal, the current political scene played an important role in this business direction. The election of Donald Trump as the President of the United States turned U.S. soil into a profitable territory for businesses. During his electoral campaign, Donald Trump promised to offer the best of benefits to businesses again. He is going to eliminate some of the damaging and narrow regulations intended to entrepreneurs, such as costly fees on imports.
Moreover, in the wake of political tensions between U.S. and Mexico, Samsung decided to leave the latter. Donald Trump intends to increase border tax on Mexican products. The tech giant wants to avoid feeling this impact as much as possible. U.S. market continues to be one of the largest ones for Samsung goods. This can act as a one more viable reason that can convince Samsung to move its factory within American grounds.
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