Tianjin Samsung Electronics Telecommunication (TSTC)

History

2018: Closing of factory

On December 12, 2018 Samsung Electronics announced closing of one of the plants in China — Tianjin Samsung Electronics Telecommunication (TSTC). Basic reasons of this solution are connected with the falling sales of smartphones and relative high cost of labor power in Celestial Empire.

Until the end of 2018 the enterprise for release of the Samsung mobile phones located in the city of Tianjin will stop work. As a result the company will have one factory making smartphones in continental China — in Huizhou  (Province of Guangdong).

Samsung closes the plant because of expensive labor power in China and drops in sales of smartphones

Samsung announced closing of TSTC after employees of the enterprise began to write about it on social networks.

Samsung is immensely grateful to the employees for devoted support. We consider a duty to provide a fair and reasonable compensation packet which includes consultations on professional activity and professional training. Besides, an opportunity to pass to other Samsung enterprises where it is possible, said in the statement of South Korean corporation which provides the South China Morning Post edition will be available.

By November, 2018 about 2600 people worked for TSTC. How many smartphones are manufactured at this plant, not Samsung does not specify. According to the Electronic Times edition, it is about production of 36 million phones a year whereas at the plant in Huizhou 72 million devices are produced. For comparison, in Vietnam rolls about 240 million tubes off the production lines of two plants Samsung annually.

There is no Samsung need to remain in China because labor costs grow here, and there is almost no share of the company in the Chinese market. It would be better for them in India and Vietnam — the senior analyst of Hyundai Motor Securities Greg Roh considers.

Samsung claims that the company still considers the Chinese market important.^[1]

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