Samsung Electronics is expected to push ahead with the construction of a mobile handset plant in India.
"It is true that we are considering such investment plans in India," a Samsung Electronics spokesman said. He, however, neither denied nor confirmed a news report about its construction plan.
Yonhap News Agency reported through a dispatch from India that Samsung Electronics has concluded a deal to build its mobile handset plant in either Noida or Mumbai, cities close to the capital city of New Delhi, weighing the tax incentives and logistics costs of the industrial complexes in the respective cities.
It said Samsung is considering installing facilities by renting an existing factory rather than building a new one. If so, Samsung will be able to launch operations of its proposed plant as early as end of 2005.
Samsung is reportedly considering establishing an independent subsidiary exclusively for the mobile handset operation in India apart from the existing Indian digital media and digital appliance subsidiary. A Samsung Electronics official also said it is highly likely for the electronic giant to set up separate entity to oversee its mobile handset operations in India if it is to build the plant.
LG Electronics, which launched commercial operation of its Ranjangaon mobile handset plant located 50 kilometers southwest of Pune, India, in the first half, churns out 2 million phones a year. LG Electronics is the first global cellular phone maker to establish mobile phone plant in India. (The Korea Times)
to Daily News