SEOUL, March 26 (AJP) - LG Electronics is prepared to swiftly scale up production at its U.S. manufacturing facilities should the Trump administration impose new tariffs on Mexico, a key manufacturing base for the South Korean electronics giant, its CEO said.
“As a last resort against tariffs, we have prepared the Tennessee factory site to produce everything from refrigerators to ovens,” said Jo Joo-wan, LG’s chief executive, during the company’s annual shareholder meeting in Seoul. “We are already proceeding with site preparation and putting up temporary buildings, and will act without delay if tariffs take effect.”
The U.S. government has announced plans to impose reciprocal tariffs on a broad group of nations — including Mexico, the European Union, Canada, Russia, Vietnam and others — beginning April 2.
LG, which currently manufactures many of its home appliances for American consumers in Mexico, has previously indicated it would consider shifting more production to the United States in response to trade barriers.
At the meeting, Jo also unveiled a new strategic emphasis on regional expansion, particularly in emerging markets.
He pointed to opportunities across the so-called Global South — including India, Latin America, and the Middle East and Africa.
India, in particular, will be a focal point. LG is preparing an initial public offering for its Indian subsidiary, a unit the company estimates is valued at approximately $15 billion. Proceeds from the IPO would be directed toward expanding LG’s manufacturing footprint in the country.
The company also plans to bolster its business-to-business operations, especially in heating, ventilation and air conditioning (HVAC), smart factory solutions, and automotive electronics.
As part of that effort, Jo is set to meet with Satya Nadella, Microsoft’s chief executive, who is visiting South Korea for the Microsoft AI Summit.
“You can consider it confirmed that we will jointly develop an AI agent with Microsoft,” Jo said. “LG Electronics chillers will also be installed in Microsoft data centers.”
reporter
Candice Kim
candicekim1121@ajupress.com
Copyright ⓒ Aju Press All rights reserved.
View more comments