LOUISVILLE, Ky. — GE Appliances has announced a significant investment of $490 million to relocate the production of clothes washers from China to its Louisville, Kentucky manufacturing complex. This strategic move is expected to create 800 new jobs and position the company as the leading U.S. manufacturer of washing machines.
“We are bringing laundry production to our global headquarters in Louisville because manufacturing in the U.S. is fundamental to our ‘zero-distance’ business strategy to make appliances as close as possible to our customers and consumers,” said CEO Kevin Nolan. “This decision is our most recent product reshoring and aligns with the current economic and policy environment.”
Impact of Tariffs and Economic Policies
The announcement comes amid efforts by the U.S. government, particularly under former President Donald Trump, to incentivize domestic manufacturing through tariffs on foreign goods. These policies have included a 10% tariff on imports from most countries and a 30% levy on Chinese goods. GE Appliances has stated that nearly all the steel used in its U.S. manufacturing comes from American steelmakers, underscoring its commitment to domestic production.
The project will transition the production of a combo washer/dryer and a series of front-load washers from China to Kentucky. This shift will involve over 15 models of front-load washers being manufactured at the Louisville facility, known as Appliance Park. The expansion will result in the production area equating to the size of 33 football fields.
State and Local Reactions
Kentucky’s Democratic Governor, Andy Beshear, welcomed the investment, emphasizing its significance for the state’s economy. “Today’s announcement brings more appliance manufacturing back to the United States and solidifies Kentucky and Louisville as the global headquarters of GE Appliances,” he stated.
The redesigned factory is set to become one of the most advanced manufacturing plants for clothes washing production, incorporating cutting-edge automation, robotics, and material-handling technologies. The new manufacturing lines are expected to commence operations in 2027.
Strategic Expansion and Future Outlook
GE Appliances, a subsidiary of the China-based Haier company, has been gradually expanding its U.S. manufacturing capabilities. The $490 million investment is part of a broader strategy, building on $3.5 billion in U.S. manufacturing investments over the past decade, with a significant portion allocated to Appliance Park.
Appliance Park currently employs about 8,000 workers and houses five plants producing washers, dryers, dishwashers, refrigerators, and components. The company also operates manufacturing plants in South Carolina, Alabama, Georgia, Tennessee, and Connecticut.
Lee Lagomarcino, vice president of clothes care at GE Appliances, highlighted the benefits of domestic production, stating, “Manufacturing in Louisville puts production closer to our designers, engineers, and consumers so that together we can create our most innovative laundry platforms.”
By the Numbers: $490 million investment, 800 new jobs, 33 football fields of production space
The move represents a significant step in GE Appliances’ strategy to enhance its U.S. manufacturing footprint, aligning with broader economic trends and policy shifts aimed at bolstering domestic production capabilities.
The implications of this investment extend beyond job creation, potentially influencing supply chain dynamics and setting a precedent for other manufacturers considering reshoring their operations. As GE Appliances continues to expand its U.S. presence, the company’s commitment to innovation and local production is expected to drive further growth and development in the American manufacturing sector.
Associated Press Writer Paul Wiseman in Washington, D.C., contributed to this report.
