Samsung to suspend operations at mobile phone plant in China

Joanna Estrada
August 15, 2018

The company is expected to suspend operations at the Tianjin Samsung Telecommunication (TSTC) factory in Tianjin, northern China as early as next year.

Samsung issued a response to say that nothing has been decided.

Now Playing: Watch this: Galaxy Note 9 vs. S9 Plus: What's the difference? Samsung is trying hard to increase its efficiency and c0mpetitiveness by introducing some new activities at the factory. While the company hasn't officially confirmed the impending shutdown, an unnamed Samsung executive tells the scribe that "We have reduced production at the Tianjin plant and will continue to do so in the future".

South Korean electronics giant may shut down its production at a mobile factory in China, according to media reports. Samsung's China shared dropped to less than 1 percent this year, outgunned by Huawei, Xiaomi and other Chinese brands, particularly on pricing. The Tianjin factory is one of two in China.

Samsung is also under pressure to start increasing its smartphone sales after it suggested its slowest quarterly profit growth in more than a year, the rival makers of smartphone took the lead due to cheaper feature-packed phones.

The other plant that Samsung runs in China is in Huizhou. It does not appear that this plant will be closed with that in Tianjin. In a statement, Samsung said, "The overall smartphone market is having difficulties due to slowing growth".

Samsung might stop producing mobile phones this year at Tianjin Samsung Telecom Technology, its Chinese mobile phone manufacturing base in Tianjin, the South Korean newspaper said.

Other reports by Click Lancashire

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