Samsung Electronics to Increase Handset Production in Korea; Looking into Vietnam
16 May 2007
South Korea's Samsung Electronics Co said it will invest 200 billion won ($216.4 million) to boost production of mobile phone handsets in South Korea. The company also said it is considering Vietnam for its next overseas facility.
The company, the world's third-largest handset maker, will increase output at its Gumi, South Korea plant to 75 million units this year from 69 million last year, the company said in a statement.
The investment will be used to transform the facility into a research and development as well as a "manufacturing hub," Samsung said.
Separately, Samsung spokesman Anthony Lee said the company is considering several sites, including Vietnam, for its next overseas plant. "Vietnam is one of the sites we are looking into but we haven't finalized our plans,'' Lee said.
Lee's comment came after South Korea's Chosun Ilbo newspaper reported that Samsung will establish a handset manufacturing plant in Vietnam by next year. The paper cited an industry source as saying Samsung decided to build the facility there because of cheaper labor costs.
Samsung already has handset facilities in China, India and Brazil.
