The Slovak Samsung Electronics plant in trouble
Samsung Electronics posted a 21% drop in net profit to €62.5m and its sales dropped 26% to €1.760bn in 2018. After closing its display plant in Voderady in April 2018, it is shrinking its plant in Galanta that makes LED TV sets. Its payroll fell by 2,000 to 1,600 over the past three years. Samsung says it is not leaving Slovakia despite using up its third state investment stimulus last year.
The situation is taking its toll on Samsung’s suppliers too. Companies Inzi and Bang Joo found new customers in the automotive sector but Nuritech and Fine DNC closed down. Last week, Dong Jin Precision, which was making plastics parts for Samsung, announced it is closing its plant near Sereď. Neighboring production and logistics facilities have already offered jobs to its workers.