Samsung Electronics to Relocate Western European Production Lines
Jan 15, 2004
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Samsung Electronics Co. plans to relocate or close down some of its foreign production lines to enhance its overall competitiveness, company planners said.
The electronics giant said the measures will mainly affect plants in Western Europe that are losing their edge because of location and cost effectiveness with the expansion of the European Union. Ten Eastern European countries will be joining the union in May.
Under the plan, Samsung will move parts of its plant in Barcelona, Spain to Slovakia and China, while closing down its Winyard plant in Britain.
The company said that Western Europe remains important to Samsung as a base for research and development and product design, while Eastern Europe will become its new manufacturing center.
The company has been making microwave ovens and monitors in Britain and color TVs and cellular phones in Spain since the mid-1990s, but these plants have become costly to maintain because of the rising cost of labor and materials. Samsung has 35 manufacturing bases in 15 countries worldwide.
Kim Young-jo, the head of Samsung's restructuring operation in Europe, said that besides raising competitiveness, the move is intended to further globalize the company's manufacturing base and make inroads into emerging markets. (Yonhap, Asia Pulse)
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