Samsung Shenzhen factory abolished as a whole: 5 years without market order in China

category:Internet
 Samsung Shenzhen factory abolished as a whole: 5 years without market order in China


In May 2nd, the reporter once again came to Shenzhen Samsung Electronics Communication Co., Ltd. The company, which is located in Shenzhen Nanshan District high tech North District, has broken the calm of the past because of the abolition of the factory as a whole. After many twists and turns, the reporter was able to enter the tight security factory and get an exclusive reply from the factory. The responsible person in the factory told the daily economic news reporter, all 297 employees of the company have all signed a negotiated economic compensation agreement to remove labor relations, involving more than 44 million yuan of compensation. In addition, we have held a number of job fairs to help employees get employed. At present, some employees have already left, and about 100 people are in the process of finishing the work. 5 years of transition will not reach the expected goal For the reasons for the abolition of the whole plant, the responsible person said, the company began to turn to the production of communication base station equipment in 2013. But after nearly 5 years of hard work, it did not achieve the desired goal. Looking back, it seems very difficult to enter the Chinese market, so we decided to cancel the processing plant. According to people familiar with the matter, the plant has been producing very little since the beginning of this year. In March 30th, the factory announced the abolition of the whole, and in April 1st started the staff diversion and resettlement work. Under the intervention of the Nanshan District Labor Supervision Bureau of the Bureau of human resources affairs, as of the afternoon of April 19th, all employees of the company signed a consultation agreement to terminate the economic compensation agreement on labor relations. The public information shows that Shenzhen Samsung Electronic Communications Co., Ltd. was established in February 26, 2002, is a joint venture limited liability company with a registered capital of 20 million US dollars. The daily economic news reporter noted that this is the first telecommunications equipment manufacturer set up by Samsung Electronics Group and the only factory in Shenzhen. Samsung Electronics Co., Ltd. is a controlling shareholder of Shenzhen Samsung Electronics Communication Co., Ltd., holding 95%, while Shanghai Alliance Investment Ltd holds 5% stake. The information of the property rights project disclosed by the Shanghai joint property exchange in May 2nd showed that the Shanghai Alliance Investment Ltd commissioned third party companies to apply for the transfer of 5% of the shares held by Shenzhen Samsung Electronic Communications Co., Ltd., with a transfer base price of 6 million 322 thousand and 900 yuan, and a one-time payment for the transaction price payment. The data showed that in 2016 and 2017, the operating income of Shenzhen Samsung Electronic Communications Co., Ltd. was 1 billion 808 million yuan and 2 billion 343 million yuan, and the net profit was 65 million 974 thousand and 500 yuan and 90 million 567 thousand and 200 yuan respectively. Corporate financial report shows that as of February 28, 2018, the companys operating income was 39 million 243 thousand and 600 yuan, net profit loss of 294 million yuan. Cost competition does not have advantages A Shenzhen Samsung plant insider told the daily economic news reporter that the factory is responsible for manufacturing, research and development and sales by other companies. In fact, 4 to 5 years after the transformation of the factory, Samsung has not yet sold a network communication device in China. In recent years, factories have been receiving orders from South Koreas headquarters. The responsible person also agreed with this statement. Samsung headquarters has predicted that it will be more difficult to enter the communications equipment market in China last year. Cost competition is still inferior to HUAWEI and ZTE. As the development of the network base station market is a systematic project with many comprehensive factors, Samsung has so far failed to get through the Chinese market. Even with the advent of the 5G market, from the current situation, the opportunity for Samsung to enter the Chinese market is relatively small. Research firm IHSMarkit reported that HUAWEI beat Ericsson last year to become the worlds largest manufacturer of communications equipment, the market share of mobile infrastructure business was 28% last year, up 3 percentage points from 25% in 2016; Ericsson fell to 27% to second; NOKIA fell to 23% in third; ZTE occupied 13% of the worlds market share ranked fourth, while Samsung occupied 3% of the market share, ranking fifth. Liu Jie, a communications industry observer, told reporters, Samsung accounts for a small proportion of communications equipment. Samsung has not seen Samsungs data in recent years. At present, the global communications equipment business is mainly based on HUAWEI, ZTE, NOKIA and Ericsson. The Samsung China Investment Co told the daily economic news that Samsung has decided to revoke the Shenzhen SSET legal person in order to strengthen the strategic consideration of the competitiveness of the Samsung network. At the same time, China is still a very important market. Source: Daily Economic News Editor: Yao Liwei _NT6056 Research firm IHSMarkit reported that HUAWEI beat Ericsson last year to become the worlds largest manufacturer of communications equipment, the market share of mobile infrastructure business was 28% last year, up 3 percentage points from 25% in 2016; Ericsson fell to 27% to second; NOKIA fell to 23% in third; ZTE occupied 13% of the worlds market share ranked fourth, while Samsung occupied 3% of the market share, ranking fifth. Liu Jie, a communications industry observer, told reporters, Samsung accounts for a small proportion of communications equipment. Samsung has not seen Samsungs data in recent years. At present, the global communications equipment business is mainly based on HUAWEI, ZTE, NOKIA and Ericsson. The Samsung China Investment Co told the daily economic news that Samsung has decided to revoke the Shenzhen SSET legal person in order to strengthen the strategic consideration of the competitiveness of the Samsung network. At the same time, China is still a very important market.