Samsung Electronics will stop activities at one of its cell phone fabricating plants in China, the organization stated, as its deals on the planet’s greatest cell phone showcase droop in the midst of rising rivalry from lower-cost neighborhood rivals.
The South Korean organization has seen a lot of the Chinese market psychologist to 1 percent in the primary quarter of this current year, missing out to home-developed brands like Huawei [HWT.UL], as per statistical surveying firm Counterpoint, which pegs a lot of the pie at around 15 percent at mid-2013.
"As a component of progressing endeavors to upgrade effectiveness in our generation offices, Samsung Electronics has landed at the troublesome choice to stop tasks of Tianjin Samsung Electronics Telecommunication," Samsung said in an announcement, alluding to the plant in the northern Chinese city of Tianjin.
The manufacturing plant, which as of now utilizes around 2,600 individuals, is planned to be closed somewhere around the finish of this current year.
Samsung, the world’s greatest cell phone creator, said it would offer pay bundles to the workers and furthermore give chances to exchange with other Samsung offices.
The organization, which has been concentrating on minimal effort nations like Vietnam and India for creation, added it would keep on working another Chinese telephone industrial facility in Huizhou, in the southern region of Guangdong.
"Samsung doesn't have to remain in China in view of rising work cost and its nearly non-existent Chinese piece of the pie. They can be in an ideal situation in India and Vietnam," said Greg Roh, a senior examiner at Hyundai Motor Securities.
Samsung’s Tianjin plant produces 36 million cell phones per year and the Huizhou plant makes 72 million units, while two of Samsung’s production lines in Vietnam consolidated make 240 million units per year, as per the South Korean paper Electronic Times.
Samsung declined to uncover the limit of every industrial facility.
