New Maytag, Amana laundry lines to be built in South Korea

New Maytag, Amana laundry lines to be built in South Korea
Date February 24, 2004

By PETER HUSSMANN
Editor

A new product line of high efficiency, front load Maytag and Amana laundry products will soon begin to be produced by a South Korean manufacturer, Maytag Corp. announced today.

Maytag and Samsung Electronics Co., Ltd., announced today completion of an agreement where the Korean manufacturer will build the new product line at an existing South Korean plant.

Maytag officials said the agreement is designed to expand Maytag’s existing laundry product lines and strengthen its market position, both in the United States and internationally.

“Since these laundry models will be new for Maytag, this agreement will help us increase the variety of laundry products Maytag offers to consumers worldwide while continuing our tradition of dependability and innovation,” said Ralph Hake, Maytag’s chairman and CEO. “This laundry partnership will combine the best of Maytag’s design, testing, consumer research, marketing and sales expertise with Samsung’s laundry and electronics knowledge and world-class manufacturing capability.”

Maytag officials said the new product lines will not replace production of Maytag laundry products at its existing four laundry facilities and that laundry manufacturing will continue in the United States.

“We needed to get a product to market quickly and we decided to partner with Samsung,” said Maytag spokesperson Karen Lynn. “This is not part of what’s going on at (the Newton) plant. These are new products, not replacements.”

Maytag spokesperson Lynne Dragomier would not comment on the name of the new product, which price category the new products would target or the number of South Korean workers involved in the start-up.

Maytag officials said the new laundry models will be marketed exclusively under the Maytag and Amana brands and will be sold through normal Maytag distribution channels beginning later this year in the United States and international markets. In addition, the agreement with Samsung will “serve as a basis for discussion about other potential business cooperation,” Hake said in a prepared Maytag release. Dragomier would not elaborate.

“This is an extension of our laundry products,” Dragomier said. “This is designed to strengthen our laundry platform with additional offerings to consumers.”

Samsung Executive Vice President Moon Young Lee said the company is pleased with the agreement.

“We’re pleased to cooperate with Maytag, a leader in the United States laundry appliance market,” he said. “Our advanced technology, along with Maytag’s product development, engineering and design expertise, will ensure we maintain the highest standards of quality that customers expect.”

Maytag announced a partnership with Samsung last August when it created its new appliance services business to repair and provide maintenance on all major appliance brands. As part of the new operation, Maytag reached an agreement with Samsung Electronics America to allow Maytag Services to be an authorized service center for warranty and out-of-warranty work on Samsung appliances. Samsung holds the number one global market share in microwave ovens and also sells refrigerators and air conditioners.

In the announcement, Maytag noted the majority of its production operations are U.S. based.

“Approximately 90 percent of all manufacturing across the entire corporation takes place in the United States,” the press release stated. “In addition, 96 percent of Maytag Appliances’ manufacturing employees are located in the United States, where the corporation operates 12 manufacturing plants, including four laundry facilities.”

UAW President Pat Teed was in union negotiations on behalf of Vernon Company bargaining members this morning and unavailable for comment. The Vernon Company’s contract expires at the end of the month.

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One Response to “New Maytag, Amana laundry lines to be built in South Korea”

  1. Russell Says:

    Question 27 does not make sense. can you please verify what the question Korea/Where is the MMV5165BA?

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