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Home Topics Hyundai

Hyundai, Samsung, LG Suspend More Plants Abroad Due to COVID-19

James Jung by James Jung
PUBLISHED: March 27, 2020 UPDATED: March 29, 2020
in Hyundai, LG, Samsung, South Korea, Virus, World Health Organization
0
hyundai samsung lg
South Korean companies are shutting down their plants abroad due to the COVID-19 spread.

South Korean companies are shutting down their plants abroad due to the COVID-19 spread.

As more countries deteriorate due to the rapid and widening spread of the COVID-19, South Korean companies are suspending more facilities located overseas. Samsung Electronics, LG Electronics, and Hyundai Motor experienced a huge business shock as the companies shut down their major factories in the United States and Brazil.

Hyundai Motor

Hyundai Motor temporarily suspended its plant operation in Brazil until April 9. The move came after the Brazilian state’s policy declaring a state of emergency due to the virus spread. The carmaker’s overseas production bases shut down amid a series of virus outbreaks.

Sao Paulo’s state government banned commercial transactions for 15 days. Under the policy, a total of 33 plants, including Ford, General Motors, and Volkswagen, would shut down until April.

The company recently suspended its plant in Alabama, U.S. on March 18, in the Czech Republic on March 19, and in India on March 23.

The South Korean automaker would also temporarily suspend operations situated in St. Petersburg, Russia, starting from Monday until Friday. The company would also close its plant in Turkey beginning Friday.

Samsung Electronics

Samsung Electronics announced Friday that it would suspend its production plant in Campinas, Sao Paulo, Brazil, for two weeks starting from Monday until April 12. The smartphone maker already halted its factory in Manaus, Amazonas, located in northern Brazil closing the plant earlier this week.

The South Korean company also shut down 300 of its stores and 17 customer service centers across Brazil since Tuesday. The tech company advised its workers to work from home for their safety and protection.

According to Samsung officials, the company would evaluate the spread of the virus before reopening the plants.

LG Electronics

LG Electronics decided to shut down its washing machine production plant in Tennessee in the United States. The suspension would last for two weeks to stop the virus’ spread. The company also shut down on the same day its plants located in India.

The U.S. factory produces 100,000 washing machines per month, with about 600 employees.

The World Health Organization (WHO) declared the coronavirus outbreak as a “pandemic.” COVID-19, which initially emerged in Wuhan, China, is now quickly spreading throughout the Americas and Europe.

Company officials and market analysts expect the pandemic to impede economic and social activities severely. The suspension of South Korean factories in different countries would likely take a toll on their respective businesses.

Tags: coronavirusCOVID-19hyundaiLGSamsungshut downSouth KoreasuspensionWHO

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