The Strategist

Samsung to invest $ 300 million in the US economy

03/09/2017 - 14:30

South Korean corporation Samsung intends to expand its production in the US by investing at least $ 300 million in the country’s economy, according to The Wall Street Journal.

Lali Masriera
Lali Masriera
The newspaper’s sources said that Samsung's efforts will initially create at least 500 new jobs in the US. In the future, this figure, along with an influx of additional investments, is expected to increase. The manufacturer is going to create facilities for production of household appliances.

Representatives of the South Korean company are already negotiating with authorities of several US states before choosing where exactly the new assembly plant will be built, writes The Wall Street Journal. The newspaper also reports that Samsung intends to transfer part of the existing production from Mexico to the United States.

As the newspaper notes, Samsung's increased interest in growing production in the US is connected with election of Donald Trump as the country's President. During his election campaign, he repeatedly spoke of his intention to significantly increase number of jobs in the US economy.

Representatives of Samsung confirmed existence of such plans, but clarified that they are at the preliminary discussion stage. "This is a complex process, which, like all strategic business solutions, will not end until the most careful planning," the corporation told the Wall Street Journal.

During the pre-election race, Trump regularly criticized those companies that transfer part of their production from the US to other states to reduce the tax burden and costs. He promised that he could take actions against such companies by introducing new duties on their products.

After the Republican won, a number of major Asian companies managed to find a common language with Trump, believing that his coming to power promises broad opportunities for foreign investment in the United States. So, Japanese automaker Toyota announced its intention to invest $ 10 billion into the US economy within the next five years.

Earlier, Masayoshi Son, general director of telecommunications corporation SoftBank, has held a meeting with Trump. He announced that his company, headquartered in Tokyo, is going to invest $ 50 billion in the US economy, which will help create 50,000 new jobs.