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Samsung to Shutter Mobile Phone Plant in China

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Dec 12, 2018, 9:05 AM by Eric M. Zeman

Samsung says it plans to stop making phones at its manufacturing plant in Tianjin, China. Samsung will close the factory entirely, laying off some 2,600 people by the end of the year. "As part of ongoing efforts to enhance efficiency in our production facilities, Samsung Electronics has arrived at the difficult decision to cease operations of Tianjin Samsung Electronics Telecommunication," said Samsung in a statement. The Tianjin plant is responsible for making about 36 million phones per year. Samsung's share of the Chinese market has sunk from 15% in 2013 to about 1% in 2018. Samsung's high-priced Galaxy S and Galaxy Note phones have found steep competition from lower-cost devices from Chinese rivals such as Xiaomi, Meizu, and Huawei. Samsung will keep its plant in Huizhou, which makes about 72 million phones per year, operational. Samsung insists that China "remains an important market" for the company.

Reuters »

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