By Yoon Sung-won
LG Electronics has opened a home appliance distribution center in New Jersey, Monday.
The new distribution facility will work as a “logistics hub,” targeting the eastern part of the world’s largest marketplace for premium electronics products.
It is expected to store and distribute electronics products such as refrigerators, dish washers, ranges, washing machines and dryers manufactured at the company’s plants in the United States, including the one currently under construction in Tennessee.
“East Windsor Township in New Jersey is an attractive place to do business,” LG Electronics USA’s vice president of supply chain division Paul Heffernan said.
“In East Windsor, we have a great facility in a great location, centrally located between New York and Philadelphia. There is a terrific workforce here and excellent transportation access, too. LG is looking forward to being a good neighbor and good corporate citizen in the home of our new facility.”
LG Electronics USA started building the distribution center in October last year.
East Windsor Township Mayor Janice Mironov welcomed the decision.
“This project will generate substantial local tax incomes and new jobs, as well as new patrons for our many stores and restaurants,” he said.
East Windsor Township is connected to New York and Philadelphia through major transportation networks, according to the mayor.
LG ranks third in the U.S. electronics market with a 15.7 percent share while remaining in the top perch in the premium drum washer sector for the last 10 years.
LG has continued to expand the proportion of its North American operation in total sales in recent years. The company generated 30 percent of its total global sales from North America in 2015, up from 25 percent in 2014.
Aiming at further boosting its presence in the North American premium electronics market, LG is pushing to expand infrastructure in the U.S.
To prepare for the strengthened protectionism trade policy of the Trump administration, the company is establishing a major plant in Tennessee, pouring in an investment of $250 million. Once the new plant starts operation in the latter half of next year, it is expected to be able to produce more than 1 million products a year, including premium drum washers.
LG is also planning to build an electric vehicle component plant in Detroit, investing about $25 million by early next year. The plant in Detroit is expected to mainly produce battery packs.
The electronics company is also going to build an office building in New Jersey, aiming to complete it by late 2019. The company is expected to spend $300 million on the construction of the building.