Samsung downsizes last smartphone plant in China

Samsung Electronics began downsizing of its last smartphone manufacturing facility, the last one of its kind remaining in China, according to a media report by Chasin, a Chinese business daily, on Wednesday. It was implemented in the form of voluntary retirement, receiving applications throughout June 14.

The action comes as a follow-up measure to the closure of facilities in Tianjin in December last year, impacted by sluggish smartphone sales in China. Samsung opened its first manufacturing plant in China at Huizhou in 1992 and has locally manufactured smart phones since 2006.

“The downsizing is part of efforts to propel management efficiency to address declining local sales, caused by a stagnant mobile phone market and increased competitiveness among mobile phone brands. It is irrelevant to trade conflicts between the U.S. and China,” explained Samsung Electronics.


Dong-Jun Heo hungry@donga.com