GE Appliances Announces Major Shift in Production to the U.S.
LOUISVILLE, Ky. (AP) — In a significant strategic move, GE Appliances has unveiled plans to transition the production of refrigerators, gas ranges, and water heaters from China and Mexico to the United States. This initiative is part of an ambitious investment exceeding $3 billion aimed at expanding operations across Kentucky, Georgia, Alabama, Tennessee, and South Carolina.
Investment Details and Job Creation
This landmark investment, marking the second largest in the company’s history, is projected to create over 1,000 new jobs. The plan aims to enhance domestic production capabilities and modernize existing plants within the next five years.
CEO’s Vision for U.S. Manufacturing
CEO Kevin Nolan emphasized the long-term commitment to manufacturing close to customers, stating, “With lean manufacturing, upskilling our workforce and automation, the math works for manufacturing in the United States.”
Shifting Production Locations
The company’s announcement includes relocating gas range production from Mexico to a facility in Georgia and moving six refrigerator models currently made in China to its Alabama plant. In June, GE Appliances also signaled its intent to shift the production of clothes washers from China to its extensive manufacturing complex in Louisville.
Supporting Domestic Manufacturing
The initial phase of this investment will kick off at multiple plants throughout five Southern states. Nolan stated, “We are defining the future of manufacturing at GE Appliances by investing in our plants, people, and communities.” He highlighted that no other appliance company has invested as much in U.S. manufacturing over the past decade.
Expansion of Production Capabilities
The multiyear plan includes ramping up gas range production at the LaFayette, Georgia facility. Similarly, the Decatur, Alabama plant will take on six refrigerator models currently made abroad. The Camden, South Carolina facility will begin producing electric and hybrid heat pump water heaters, effectively doubling its output and workforce upon project completion.
Community and Economic Impact
In Tennessee, a new air conditioner model will be manufactured at the Selmer plant. The ongoing commitment to investment includes a recent $490 million injection into the Kentucky complex for the production of a combo washer/dryer as well as various front-load washers currently produced in China.
Future Commitment to U.S. Manufacturing
By fully implementing its new plan, GE Appliances aims to have invested a total of $6.5 billion in its 11 U.S. manufacturing plants and distribution network since 2016. Kentucky Governor Andy Beshear highlighted this investment as a testament to the state’s strong workforce and resources necessary for supporting world-class companies.
Connecting with Education for Workforce Development
GE Appliances is also collaborating with universities, technical schools, and high schools to ensure their facilities are staffed with a skilled workforce. Bill Good, vice president of supply chain, underscored the importance of workforce development, stating, “America’s manufacturing renaissance will be built by people.”
Economic Contributions
As a subsidiary of the China-based Haier company, GE Appliances claims to contribute over $30 billion annually to the U.S. economy, supporting more than 113,000 jobs directly and indirectly through its operations, suppliers, and distribution network.
