GE Appliances moving more output from China and some from Mexico to U.S. as part of $3 billion investment

CBS News

17 hours ago

Louisville, Ky. — GE Appliances plans to shift production of refrigerators, gas ranges and water heaters out of China and Mexico as part of a more than $3 billion investment to expand its U.S. operations in Kentucky, Georgia, Alabama, Tennessee and South Carolina.
The investment - the second-largest in the Louisville-based company's history - is expected to add more than 1,000 jobs while ramping up domestic production and modernizing plants in the next five years.
"Our long-term strategy is about manufacturing close to our customers," said CEO Kevin Nolan. "With lean manufacturing, upskilling our workforce and automation, the math works for manufacturing in the United States."
The majority of GE's appliance production is already in the U.S. and the shift means only that the company will transfer more work to its domestic plants.
GE will relocate production of gas ranges from Mexico to a plant in Georgia, while six refrigerator models now made in China will be manufactured at its Alabama plant, the company said.
In June, the company said it would move production of clothes washers from China to its sprawling manufacturing complex in Louisville. The reshoring announcements come as President Trump tries to lure factories back to the United States by imposing import taxes - tariffs - on foreign goods.
Lee Lagomarcino, GE Appliances' vice president of clothes care, told CBS MoneyWatch at the time that high levies on imports from China under Mr. Trump have compelled it to "accelerate the decision-making."
GE Appliances said Wednesday that the first phase of its new investment will begin at plants in five Southern states - Kentucky, Alabama, Georgia, Tennessee and South Carolina.
"We are defining the future of manufacturing at GE Appliances by investing in our plants, people and communities," Nolan said. "No other appliance company over the last decade has invested more in U.S. manufacturing than we have, and our $3 billion, five-year plan shows that our commitment to U.S. manufacturing will continue into the future."
The multiyear plan includes ramping up production of gas ranges that have been made in Mexico but will shift to the company's plant in LaFayette, Georgia, the company said. Production of six refrigerators now made in China will move to its plant in Decatur, Alabama.
GE's plant in Camden, South Carolina, will add production of electric and hybrid heat pump water heaters, doubling the factory's output and employment once the project is complete, the company said. The plant now produces gas water heaters. Production of the company's electric and hybrid water heaters - now made in China - will shift to South Carolina.
In Selmer, Tennessee, its plant will produce two new models of air conditioners.
The latest investment includes the June announcement that GE Appliances will pump $490 million into its Kentucky complex to produce a combo washer/dryer and a lineup of front load washers that are now made in China. In all, production of more than 15 models of front load washers will shift to the company's Louisville complex - known as Appliance Park, it said.
Once its new plan is fully implemented, GE Appliances will have invested $6.5 billion across its 11 U.S. manufacturing plants and nationwide distribution network since 2016, it said.
Kentucky Gov. Andy Beshear said Wednesday that the investment shows his state's ability to support world-class companies with a skilled workforce and the resources needed to thrive.
"GE Appliances has established Kentucky as America's destination for advanced manufacturing and job creation, and today's news shows this iconic company's unwavering belief in the commonwealth and the role we play in their success," Beshear said.
GE Appliances handles product design and engineering work at its Louisville headquarters but doesn't make all of its products in the U.S. It contracts with other manufacturers, including in China, for some of its production where it doesn't have capacity or needs access to a global supply chain. The company said its core business strategy is to base production in the United States, and investments announced in June and on Wednesday are another step toward achieving that goal.
The company said it's partnering with universities, technical schools and high schools to help ensure that its plants and other facilities have a trained workforce.
"Infrastructure and tools matter, but they are not enough," said Bill Good, vice president of supply chain for GE Appliances. "America's manufacturing renaissance will be built by people."
GE Appliances is a subsidiary of the China-based Haier company.
Overall, GE Appliances says it contributes more than $30 billion annually to the U.S. economy and supports more than 113,000 jobs - both directly and indirectly - through its operations, suppliers and distribution network.