LG Electronics is set to establish a new refrigerator production line at its Tennessee plant, advancing plans to bolster US manufacturing capacity as the Trump administration’s tariff policies threaten its supply chain.
The South Korean electronics giant is actively considering adding manufacturing lines near its existing Clarksville washing machine facility to produce refrigerators. This strategic move comes as CEO William Cho confirmed preparation work has begun at the Tennessee site, including ground preparation and temporary facilities construction.
The expansion, dubbed “LG Electronics Tennessee Phase 2 Project,” will involve constructing a 55,600 square meter facility on approximately 1,257,000 square meters of land adjacent to the existing washer plant. The project will be reviewed by the Clarksville-Montgomery County Industrial Development Board on April 22.
LG currently leads the US home appliance market with a 21.1% share, narrowly beating Samsung (20.9%) and GE (16.9%). The company currently imports refrigerators from Mexico and Korea for US sales, but potential tariffs would threaten this model.
Labor costs present a significant challenge, with US manufacturing wages ranging from $28 to $35 hourly compared to just $3 to $5 for Mexican workers. The move reflects broader industry adaptation to trade tensions, as Samsung also shifted production to South Carolina following the 2018 washing machine tariffs.
This facility expansion forms part of LG Group’s reported $20 billion US investment plan over the next four years, signaling the strategic importance of maintaining manufacturing presence in its largest appliance market.
