November 22, 2024

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[THE INVESTOR] New research warned on Oct. 29 that Whirlpool Corp. may expand its safeguard petition against South Korean rivals to include vacuum cleaners.

Acting on a petition submitted by Whirlpool, the U.S. International Trade Commission determined earlier in October that imports of large residential washing machines built overseas by Samsung Electronics Co. and LG Electronics Inc. were damaging the local industry.

A report published by the Korea Electronics Association said Whirlpool may request the U.S. authorities also investigate imported vacuum cleaners, a product which is a crucial source of profit for the company.

The home appliances giant takes up 25 percent of the U.S. market. It produces 570,000 units annually, accounting for more than half of U.S.-produced vacuum cleaners.

Whirlpool‘s washers account for around 5 percent and 2 percent of the global and local markets, respectively.

The report urged Korean firms to closely watch Whirlpool’s move and recommended they consider acquiring U.S. producers to avoid potential trade disputes, taking a cue from China-based Haier Group‘s purchase of General Electronics’ home appliances business.


By Park Ga-young and newswires (gypark@heraldcorp.com)