Samsung

Type
Internal restructuring
Country
United Kingdom
Region
East Midlands (England); Leicestershire, Rutland and Northamptonshire; Leicestershire CC and Rutland
Location of affected unit(s)
Billingham
Sector
Manufacturing
(26 - 27) Manufacture of electrical, electronic and optical products
26 - Manufacture of computer, electronic and optical products
26 - Manufacture of computer, electronic and optical products
425 jobs
Number of planned job losses
Job loss
Announcement Date
16 January 2004
Employment effect (start)
Foreseen end date

Description

Samsung, the Korean electronics group, announced its decision to close its Teesside plant, which produces microwave ovens, with the loss of 425 jobs. Samsung had announced a couple of days earlier record profits and sales last year. The closure happens a few days after the press revealed scandalous subcontracting habits, involving underpaid illegal immigrants provided by Asian gangmasters. Samsung had also received £10.5 million of government grant for foreign investors. The DTI (Department of Trade and Industry) is considering claiming the aids back. The production shall be relocated in Slovakia. According to management, pay rates in England are £5.70 an hour, while they amount to £1.0 an hour in Slovakia (and £0.5 in China).

Sources

  • 16 January 2004: The Guardian

Citation

Eurofound (2004), Samsung, Internal restructuring in United Kingdom, factsheet number 59736, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/59736.