April 13, 1996 in Social Responsibility News

New TVCR Plant in Spain

King Juan Carlos I and Mr. Kim ceremoniously switched on production lines, followed by a tour of the TVCR factory. Located next to Samsung's VCR factory, Samsung's first manufacturing facility in Spain which has been in operation since 1989, the new TVCR plant will initially produce 150,000 units per year, and will reach annual capacity of 300,000 once in full production in 1997.

The factory's output of 14-inch, 20-inch and 21-inch TVCRs will be sold domestically as well as exported all over the EU. Samsung Electronics Espanola plans to expand local procurement of components, which currently represents about 15% of total procurement. Samsung has been establishing relationships with domestic suppliers over the past few years to adapt them to its production systems and plans to eventually raise local component procurement to 50%.

In 1989, Samsung began its Spanish investments with a US$12 million VCR factory. The second phase required an additional investment of US$8 million for the construction of the TVCR plant. In 1997, Samsung will initiate phase three of manufacturing facilities development plans in Spain with a US$24 million investment in the construction of vacuum cleaner and air conditioner lines. Although specific products for the fourth phase of the project are yet to be decided, Samsung intends to invest US$80 in manufacturing facilities in Spain by the year 2000. Additional investments in Spain include plans for a logistics distribution center for Southern Europe in L'Hospitalet, Barcelona.

As part of Samsung's policy of "localization," including the appointment of home nationals to senior positions in operations outside of Korea, the company has appointed Mr. Alexandre Blasi to managing director for Samsung Electronics Espanola

Samsung Electronics revenues in Spain have increased from US$40 million five years ago to US$264 million in 1995. Samsung has captured majority market share of VCRs and microwave ovenes, and holds significant market share in other product categories such as TVs, CD players, computer products, stereo systems and hand-held telephones.

Samsung Electronics Co., Ltd., a US $21 billion flagship company of Korean-based Samsung Group, is a world leader in the electronics sector, with operations in more than 60 countries. The company develops, manufactures and markets audio and
video products, household electronics goods, computers & peripheral products, display products, telecommunications & information systems, software tools & semiconductors. The company currently employs over 70,000 people worldwide.


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