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Element 'Working Hard' to Fight LCD Panel Tariffs, Won't Commit to SC Plant Closure

Element Electronics, in an emailed statement Tuesday, stopped well short of committing to close its Winnsboro, South Carolina, LCD TV assembly factory to escape the higher costs of the 25 percent Trade Act Section 301 tariffs on LCD panel imports…

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from China being proposed on a third tranche of duties. The Office of the U.S. Trade Representative released its final list Tuesday in the second tranche of 25 percent duties, those to take effect Aug. 23 (see 1808080028). A Columbia, South Carolina, newspaper reported Tuesday that Element will close the plant in October and terminate its remaining 126 employees (see 1808070010). The “teammates” who work at Winnsboro “are at risk of layoff as a result of the trade-war related tariffs on our television parts,” said Element in the statement. “As we are the only USA assembler of televisions, we believe the inclusion of our parts on the list of affected products is accidental and resolvable.” Element is “working hard to have our parts removed from the tariff list and we remain hopeful that the closure of our South Carolina factory will be avoided,” said the company. “Until then, everyone at Element, especially the potentially impacted teammates at the factory, are completely committed to business-as-usual at an otherwise thriving Element.” Just "simply the announcement" July 10 of the proposed tariffs on LCD panels from China “triggered the need” for immediate factory cutbacks because of the likely impact the duties would have on the supply chain, said Element last month (see 1807200056).