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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] LG Electronics announced it will begin producing washing machines in Mexicali, western Mexico, marking its first appliance production in the country, as part of its strategy to counter evolving U.S. tariff policies.
During the Q2 2024 earnings conference call on July 25, Ki-Kwon Kim, Executive Vice President and Head of Management at LG’s Home Solutions (HS) division, stated:
“Under the current universal tariff level of 10%, we will maintain our existing production and supply structure while operating product supply bases flexibly across U.S. regions. For washing machines, starting in September, we will expand production to our Mexicali site in Mexico to increase flexibility in tariff response.”
The Mexicali facility, previously vacated following the consolidation of LG’s TV production plants in Mexico, will now be repurposed as a key appliance manufacturing hub. Kim added that if the 25% reciprocal tariff announced by the U.S. takes effect on August 1, LG “will expand supply from both U.S. and Mexican production sites to mitigate impact.”
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
