Electronics Industries Accelerates Overseas Production Line ‘Centralization’

Createdd 2003-11-14 Hit 6295

Contents

As establishing factories in foreign countries through reduction in distribution costs, customs benefits and other benefits are becoming active, electronic industries are aiming at increasing profit by strengthening overseas production line concentration. 
This kind of strategy can be explained that electronic industries are driving for tariff benefits and cost reduction in physical distribution and not to mention the benefits of the investing country market and inexpensive labor. 
According to industry relations on Nov. 13, Samsung Electronics Co., Ltd. completed constructing a refrigerator factory in New Delhi, India, which can produce about 300 thousand refrigerators per year. 
Samsung Electronics started off with color TVs in ’97, microwave ovens in ‘98, monitors in 2000, laundry machines and air conditioners in 2001 and this year, the company has reached up to refrigerators. 
LG Electronics Inc. [066570] has already established production lines for household electrical appliances in India. 
India is an appealing country for its population and as an outpost to penetrate into Southwest Asian countries. 
China is already producing almost all kinds of household products in many cities and production may also surpass Korea’s production. 
LG Electronics has 10 product factories established in China and Samsung Electronics produce almost all household products except vacuum cleaners, and also Daewoo Electronics, which has established a microwave and air conditioner factories in China during the 90s, are the 3 big home appliance enterprises concentrating on the great population and inexpensive labor force in China. 
(Rest omitted) 
Source : Yonhap News Agency, November 13, 2003