Samsung Heavy Industries Withdraws from Ningbo Subsidiary in China as Part of Overseas Operations Efficiency Improvement

[Asia Economy Reporter Kim Hyewon] Samsung Heavy Industries announced on the 14th that it plans to withdraw its production subsidiary in China, 'Ningbo Yuhan Gongsa (Ningbo Limited Company)'.

The assets owned by the subsidiary, including land, are expected to be acquired by the Chinese government. Samsung Heavy Industries is in discussions to complete the remaining processes by the end of the year and finalize the handover procedures early next year.

Samsung Heavy Industries' Ningbo subsidiary in China was established in 1995 and has supplied ship blocks to the Geoje shipyard for 26 years. However, due to aging facilities leading to decreased production efficiency, the company decided to withdraw as part of a strategy to improve the operational efficiency of overseas business sites.

A Samsung Heavy Industries official explained, "Block production, which was carried out at two business sites in China, will be unified and focused on the Longcheng (Rongcheng) subsidiary to increase efficiency."

Samsung Heavy Industries established and operated ship block production subsidiaries in Ningbo City, Zhejiang Province in 1995, and in Longcheng City, Shandong Province in 2006, to respond to increased shipbuilding volume during past boom periods and to secure cost competitiveness. As of the end of last year, the production volumes were approximately 150,000 tons and 200,000 tons, respectively.

This content was produced with the assistance of AI translation services.