The Electronic Times reported that Samsung Electronics Co Ltd is considering suspending operations at one of its mobile phone manufacturing plants in China, due to slumping sales and rising labour costs.
This year, Samsung might stop producing mobile phones at Tianjin Samsung Telecom Technology, located in the northern Chinese city of Tianjin.
The world’s biggest smartphone maker said that nothing had been decided on the fate of its Tianjin operation.
“The overall smartphone market is having difficulties due to slowing growth. Samsung Electronics’ Tianjin telecom enterprise aims to focus on activities that increase competitiveness and efficiency,” it said in a statement to Reuters.
In recent years, Samsung has focused its major mobile phone investments on production facilities in Vietnam and India.
It opened the world’s biggest smartphone factory outside New Delhi last month, which is slated to become an export hub.
The Electronic Times added thatthe Tianjin plant in China produces about 36 million mobile phones a year and its Huizhou plant makes 72 million units a year, while the two factories in Vietnam combined make 240 million units a year.