Samsung shuts one of its plants for the production of smartphones in Tianjin, China. This writes Reuters, citing a company statement.
“In a continued effort aimed at improving the efficiency of our production capacity, Samsung Electronics reached a difficult decision about the termination of activity of Tianjin Samsung Electronics Telecommunication”, — stated in the message of the company.
This decision is connected with falling sales amid growing competition from cheaper local competitors.
The South Korean company has reduced its stake in the Chinese market to 1% in the first quarter of this year, giving local brands such as Huawei. According to research firm Counterpoint, in mid-2013 the share of Samsung in China was about 15%. The plant, which now employs around 2,600 people, is expected to close by the end of this year. The company, which focuses on the production in cheap countries like Vietnam and India, added that it will continue another Chinese factory in Huizhou.