Samsung reportedly plans to shut down one of its two manufacturing plants in China, partly as a result of shrinking sales in the market.
The vendor has announced it plans to cease operations at its Tianjin Samsung Electronics Telecommunication plant in northern China, citing “ongoing efforts to enhance efficiency in our production facilities,” Reuters reported.
The Tianjin plant has around 2,600 employees and produces 36 million mobile phones a year, according to South Korea's Electronic Times. It will now be shut down by the end of the year.
Samsung has been shifting its manufacturing to Vietnam and India in the wake of rising labor costs in China, as well as its shrinking market share.
Market research company Counterpoint estimates that Samsung's share of the Chinese market has dwindled from 15% in mid-2013, to just 1% as of the first quarter of the year.
The company plans to continue to operate its manufacturing plant in Huizhou in Southern China, which produces around 72 million units per year.
By comparison, two of Samsung's factories in Vietnam produce around 240 million units per year, according to Electronic Times.