LG's decision to locate production in the U.S. could aid its push into the American home-appliance market, where it has gained share in recent years competing against rivals such as Michigan-based Whirlpool Corp.

A U.S. plant would also help the foreign company avoid U.S. tariffs aimed at its washers produced abroad. For instance, the U.S. Department of Commerce last year imposed tariffs on LG washers made in China, as the company looked for other production bases, including Thailand and Vietnam.

William Cho, chief executive of LG’s North America division, said U.S. duties were among the company’s considerations but not the prime motive for building the U.S. factory.

While new factory jobs would further U.S. President Donald Trump’s goal of boosting American manufacturing, LG’s decision was part of a long-term plan in the works since 2010, Mr. Cho said, adding that a U.S. factory would speed up deliveries to American customers, reducing shipping time and costs, and allow it to more quickly respond to market demands.

Read Full Article