The Chosun Ilbo reports that global consumer electronics manufacturer Samsung is dropping its unprofitable production lines and is actively engaged in reforming its business.
Samsung Electronics is also accelerating structural reform through spinning off production lines to boost profitability in household appliances, in which Samsung lags slightly behind rival LG Electronics. Samsung recently completed transferring household appliances production at its Korean-based Suwon plant involving washing machines and air conditioners, among others, to its subsidiary, Gwangju Samsung Electronics.
Samsung is also reducing its household appliance lines to 1,500 products by the end of 2004. The firm is said to have already started realigning less profitable home appliances such as VCRs. Faced with expensive manpower costs in Korea, the firm has reportedly decided to move its electronic range production line and others offshore.
(The Chosun Ilbo)
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