By Timothy Aeppel

June 26 (Reuters) - Chinese-owned GE Appliances said on Thursday it will spend $490 million to shift production of some washing machines to the U.S. from China as it rebalances its factory footprint amid extreme trade tensions between the world’s two largest economies.

The washers will be built at the company’s "Appliance Park" in Louisville, Kentucky, a sprawling complex of factories that serves as its U.S. hub.

The company, a division of China’s Haier, said it will add 800 workers after U.S. production begins in early 2027. The Kentucky government will provide up to $113.5 million in tax incentives for the project.

CEO Kevin Nolan said GE Appliances planned to bring the production back to the U.S. before the latest trade friction and tariffs, but the clash sped the process. "There was a lot more urgency to the plan given the current climate," said Nolan, speaking to Reuters.

Other major manufacturers have emphasized domestic investments as President Donald Trump has ramped up tariffs. Texas Instruments last week announced a $60 billion expansion of its U.S. factory footprint.

GE Appliances' recent $180 million revamp of its Georgia range factory included moving some production from Mexico.

The washer line to be made in Kentucky originated with a product development model GE Appliances started in Louisville before its acquisition by Haier in 2016.

In a hackathon, engineers from the company’s laundry business created a prototype of the washers in 2019. The company launched the Chinese-manufactured machine in the U.S. in 2023 to test consumer response before investing in large-scale domestic production.

Not all products developed this way quickly attain the scale necessary to make the move, according to the company.

(Reporting by Timothy Aeppel in New York; Editing by Cynthia Osterman)

((Tim.Aeppel@thomsonreuters.com;))