LG Electronics has announced plans to build a chiller plant in Virginia. The facility is expected to become its first overseas production base, with investment estimated at approximately ¥58 billion. Negotiations are under way on site selection, tax incentives and employment support.
South Korea’s LG Electronics has announced plans to build a large-scale chiller production facility in Virginia. It will be the company’s first local production base since it entered the related business in 2011. Discussions are under way on the selection of a factory site, investment incentives, tax incentives related to equipment purchases and corporate tax reductions associated with new hiring.
The investment is expected to exceed that for the Pyeongtaek plant in Pyeongtaek, Gyeonggi Province, and is estimated at around KRW 500 billion, or approximately ¥58 billion. The Pyeongtaek plant produces around 1,000 units annually, providing the backdrop for the planned expansion of overseas production bases.
The sharp increase in cooling demand from AI data centers is said to be driving the project. As the company pursues supply contracts with global big-tech companies such as Microsoft, it faces strong demand to build a North American local production network. LG Electronics is therefore expected to establish a local production system and pursue stable supply.