Samsung (China) Investment Co., Ltd. will completely withdraw from the air-Conditioning manufacturing business in China, the message was confirmed yesterday by one of its executives on condition of anonymity.
The Samsung factory in Suzhou is the only manufacturing base of its air-Conditioning products. Its executive told reporter that from January this year the factory began to reduce the workload of the air-conditioning production lines, and the entire production line stopped in March. “Samsung has failed to establish the cost advantage in this business sector due to comparatively small industrial scale,” said the executive.
Domestic market data shows that Samsung air conditioning took the market share of 2.68% in 2007, the figure fell down to 2.45% in 2008, and less than 2% in 2009.
LG, another South Korean electronics giant has withdrawn from the Chinese air conditioning market last year. As of the end of 2010, the market share of foreign air conditioning manufacturers in China has reduced by 50% in five years.