A Korean Giant is Going to Close One of Chinese Smartphone Plants
It is not a secret that Samsung has a lot of rivals on the Chinese market and it is really hard for a company to stay among leaders. Although, a Korean company promised to do a lot to save its leading position, it seems that Samsung couldn’t fulfill its promises.
Some recent reports informed that a company had plans to close one of its Smartphone factories in China, in Tianjin. Sales are not growing, but labor cost is becoming more and more expensive. So, yesterday a Korean giant had to inform about shutting down a Tianjin plant. Representative of a company commented that this decision was really difficult, but they had to do it in order to raise efficiency.
A Plant in Guangdong, that manufactures Smartphones, will continue working. A company promised to provide compensation to more than 2550 workers that will have to leave their working places.
Although there was no definite info about production capacity of factories, reliable sources claim that a plant, going to be closed, made around 35 million of units a year and a Guangdong factory produces more than 70 million of devices every year.
A Korean giant decided to move some of its plants to India in order to save a leading position and to be competitive on this market. More than that, Samsung opened a biggest mobile plant there in summer 2018.