Companies Postpone Overseas Site Openings One After Another... COVID-19 Shutdown Fears

LG Electronics North America Headquarters Opening Delayed Due to COVID-19
Widespread Damage Continues in Electronics Industry Including LG Display, Samsung Electronics, and Samsung Display

[Asia Economy Reporter Changhwan Lee] It has been revealed that the construction of new overseas business sites and the production of new products by our major companies are facing significant setbacks due to the impact of the novel coronavirus infection (COVID-19). Even in April, COVID-19 is spreading rapidly, mainly in the United States and Europe, raising deep concerns that our companies will continue to suffer damages in the second quarter as well.

According to the related industry on the 14th, LG Electronics' construction of a new North American headquarters building, which began in 2017 and was scheduled to be completed by the end of last year, is facing delays due to the impact of COVID-19. LG Electronics planned to invest a total of $300 million to build the new North American headquarters in New Jersey, USA, to consolidate offices dispersed across the eastern United States and to house some LG Group affiliates.

However, due to New Jersey's stringent environmental policies, the completion was postponed to early this year, and with the recent spread of COVID-19, it is reported that even the completion ceremony schedule has not yet been set.

An official from the local US industry said, "As COVID-19 has spread widely in the US, the opening of LG Electronics' North American headquarters is also being delayed," adding, "The building is almost completed, but due to COVID-19, it is difficult to predict when the official opening will be."

LG Electronics is suffering significant damage in the US, a major sales market, with its washing machine factory in Tennessee halting operations until today due to COVID-19. However, it is reported that sales of some refrigerator models have greatly increased due to food hoarding.

LG Display's business in China is also in a critical situation. The company completed an organic light-emitting diode (OLED) factory in Guangzhou, China, last year but has not yet started full-scale mass production. Mass production was expected in the first quarter of this year, but the COVID-19 outbreak delayed the timeline.

To finalize the work, LG Display urgently dispatched about 290 engineers and researchers to Guangzhou by chartered flight at the end of last month. They completed self-quarantine locally and have recently been deployed to the production process.

The industry expects that mass production of OLED will begin in the second quarter as engineers are working on the final tasks. A company official explained, "Currently, employees are working on the production line," adding, "We plan to advance the mass production schedule as much as possible."

Samsung Electronics also faces a red light on its overseas business strategy. Due to COVID-19, Samsung Electronics canceled the groundbreaking ceremony for its research and development (R&D) center in Hanoi, Vietnam, which was scheduled for the end of February. The Samsung Electronics Vietnam R&D Center, with an investment of $220 million, is the largest among Samsung's R&D centers in Southeast Asia.

Although Samsung Electronics canceled the groundbreaking ceremony due to COVID-19, construction work has reportedly begun. Due to COVID-19, major factories located not only in Vietnam but also in Europe, the US, and Brazil have suspended operations, causing significant damage.

Samsung Display is also experiencing setbacks in its overseas business. A male employee at Samsung Display's Bac Ninh plant in northern Vietnam was confirmed positive for COVID-19 yesterday. The confirmed case belongs to the quality inspection department of the Bac Ninh plant.

Accordingly, Samsung Display temporarily closed the building housing the quality inspection department at the Bac Ninh plant and conducted disinfection of the building and shuttle buses. However, the production line is reportedly operating normally as it is unrelated to the confirmed case.

An official from the electronics industry said, "Our electronics companies are suffering significant damage overseas due to COVID-19," adding, "The impact is likely to continue into the second quarter, so the damage could increase further."

This content was produced with the assistance of AI translation services.