Asia Express - East Asian ICT
Samsung Electro-Mechanics Restructuring its Operations
July 28, 2005
According to information provided by Samsung Electro-Mechanics, the company recently lowered its investment forecast for the full year 2005 from 450 billion Won to 250 billion Won. However, recent media reports suggest that the company only made investments worth 95.6 billion Won in the first half of the year, making it somewhat unlikely it will meet its revised forecast for the full year. Also, it will end operations at its underperforming imaging unit in Mexico and move its Indonesian production line to China, probably leading to 6500 job cuts and an extra 1500 cuts in the longer term. Samsung Electro-Mechanics hopes to finish this restructuring before the end of 2005, and improve its performance in 2006.