Samsung to Shift Value-line Mobile Phone Production to China
October 13, 2008
In an effort to make the company react more flexibly to the changes in the Chinese market, Samsung will move its value-line mobile phone production in Kumi, Korea, to China, with its Kumi plant concentrating on high-end mobile phones, the Electronic Times of Korea reported on October 13. Currently, Samsung has three production plants in China, including Tianjin, Haizhou, and Shenzhen.
According to the same source, the company also plans to transfer the procurement function of mobile phone key components from current headquarters to local production lines in China. Additionally, Samsung will boost share of key components supplied by Korean suppliers from current 60% to 70%. Samsung declined to make further comments on the report though.