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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Samsung Electronics will close its TV manufacturing plant in Galanta, Slovakia—its key production base for the European market—after 24 years of operation.
According to industry sources on March 19, the company plans to cease operations at the facility in May and will provide support for the reemployment of approximately 700 workers.
Established in 2002, the Galanta plant has served as a major hub for TV production in Europe. The closure is viewed as part of efforts to improve operational efficiency amid slowing demand in the TV market, intensifying competition, and rising local production costs.
The company’s financial performance has also come under pressure. Samsung’s Device Appliances (DA) and Visual Display (VD) divisions reported combined revenue of KRW 14.8 trillion and an operating loss of KRW 600 billion in the fourth quarter of last year.
The operating loss widened from the previous quarter, reaching a record high. On an annual basis, the divisions posted a loss of approximately KRW 200 billion, with similar performance expected this year.
Market competition has also intensified. While Samsung maintained the top position with a 15% market share last year, it slipped to second place behind China’s TCL in December.
Rising memory and component costs, along with higher local energy expenses, are also believed to have weighed on profitability.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
