Publication: Business News Americas - English News
Provider: Business News Americas
Newspaper: Samsung closed Tijuana plant for profit reasons
Mexico, Friday, November 11, 2005 .- Korean electronics manufacturer Samsung closed its cell phone plant in Tijuana, Mexico, in September because it was not profitable, local newspaper Reforma reported a Samsung executive as allegedly saying. When consulted by Reforma, the Mexican unit of Samsung declined to confirm that the plant had been closed for profit reasons.
"The closure of the plant was a corporate not a regional decision and had to do with the fact that investments are going to be directed into the audio and video divisions," Samsung Mexico told Reforma.
Production was 100,000 units a year. A Samsung plant in Brazil will now supply the Mexican and Central and South American cell phone markets, Reforma reported.
Samsung has been in Mexico since 1995 and has four production lines: TV; audio and video; white products; and communications systems. Besides the Tijuana plant, there are plants in Mexico City and Querétaro.
In August, Japanese CDMA handset manufacturer Kyocera Wireless (NYSE: KYO) also closed a manufacturing plant in Tijuana and outsourced production for the Americas market to Flextronics (NYSE: FLEX).