Samsung Electronics Co. announced investments worth $1.9 billion in two U.S. plants, plans on opening a $380 million plant in South Carolina and hiring nearly 1000 workers for the latter.
Samsung will spend $1.5 billion on its semiconductor factory in Texas, build a $380 million plant in South Carolina for home appliances and hire approximately 954 workers in the new plant. Both investments will be carried out until 2020.
The South Korean-based company is opening a “state-of-the-art” facility in the former Caterpillar plant in Newberry. Production is expected to start early next year.
“We aspire to be the global leader in premium home appliances,” said Samsung Electronics chief executive BK Yoon. “This new investment will enable Samsung to increase the speed with which we can deliver premium home appliances that reflect the regional preferences of our fastest growing and most important consumer market.”
The announcement came hours after new South Korean President Moon Jae-in left for the United States for meetings with President Donald Trump. Samsung Electronics CEO B.K. Yoon signed the company’s plans Wednesday morning in Washington with Gov. Henry McMaster.
“With this investment, Samsung is reaffirming its commitment to expanding its U.S. operations and deepening our connection to the American consumers, engineers and innovators,” Samsung Electronics America President and CEO Tim Baxter said.
The Newberry facility will make home appliances including washing machines starting early next year. Samsung already operates a call center in Greenville, South Carolina, that supports 800 jobs. The firm began considering expanding its U.S. production base about three years ago and initiated discussions with South Carolina in the fall of 2016.
“Samsung’s investment is great news for South Carolina and the United States, and it is a direct reflection of the fact that America is becoming an even stronger destination for global businesses looking to grow,” U.S. Commerce Secretary Wilbur Ross said in a statement.
Samsung joins a growing list of international companies that have said they would help job creation in the United States, which was a central tenet of Mr. Trump’s election campaign. His statements about renegotiating free-trade agreements and potentially imposing import duties alarmed manufacturers overseas, which were suddenly faced with potentially losing access to the biggest consumer market in the world.
Currently, Samsung’s shares are at ₩2,397,000, up 0.50%. Earlier today, it opened at ₩2,402,000 with a session high of ₩2,416,000 and a session low of ₩2,397,000. The stock has a market capitalization of ₩348.76 trillion, a P/E ratio of 13.68, and a dividend yield of 1.46%.
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