Samsung Closes Last Manufacturing Plant in China

Samsung Closes Last Manufacturing Plant in China

Samsung, South Korean manufacturers have stopped production of its products by shutting down its last plant in China. It may be because of the tough competition that it was facing in the local market and the company’s share in the market wass left at only 1 percent in the first quarter. The announcement of its shut down was made in Huizhou city of China. Samsung Closes Last Manufacturing Plant in China

The company stopped the production of its products in China a long time ago. Samsung terminated its production of phones in April 2017 by Shenzhen Samsung Electronics Telecommunication. Similarly, again it shut down its production in December 2018 by Tianjin Samsung Telecom Technology.

Samsung Closes Last Manufacturing Plant in China

After shutting down the production of phones, Samsung decided to close its last plant in China. So, the company started downsizing of Huizhou plant that was situated in the Guangdong province of China. The downsizing was started in the month of June and then it fully shut down the plant at the end of September. It was its very first plant in China that was established in December 1992.

The company said:

As part of ongoing efforts to enhance efficiency in our production facilities, Samsung Electronics has arrived at the difficult decision to cease operations of Huizhou Samsung Electronics Telecommunication.

The production in Samsung’s Huizhou plant is expected to be distributed to factories in India or Vietnam, and mobile phones manufactured in China by Samsung Electronics Huizhou are known to be distributed between two factories in Vietnam.

The company said:

In China, people buy low-priced smartphones from domestic brands and high-end phones from Apple or Huawei. Samsung has little hope there to revive its share.

According to the company, it has stopped its production in China because of the tough time and the decision is taken is to increase its efficiency. The company said that it will increase the sale of its products in China.

The company said:

The production equipment will be re-allocated to other global manufacturing sites, depending on our global production strategy based on market needs.

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