Samsung to invest Rs 1,970 crore for Noida plant expansion
In an effort to strengthen its Indian market, Samsung is set to expand its Noida plant with an investment of Rs 1,970 crore, the company said on Monday.
The Government of Uttar Pradesh has approved the investment and a Memorandum of Understanding has been signed between the state officials and Samsung India Electronics.
President and CEO of Samsung India HC Hon said: “As digitisation expands across the country, we are witnessing an increase in the adoption of electronic devices, appliances and mobile phones. A bigger and more robust manufacturing facility will help us address the needs and demands of our growing customer base across the country and the region.”
The new agreement will see the allotment of around 30 acres of land to build a mobile manufacturing unit and refrigeration plant in the city’s Sector 81 area, TOI reported. The investment is expected to take place in 2019.
Commenting on the MoU, Uttar Pradesh Chief Minister Akhilesh Yadav said: “Samsung has been our partner in this growth right since 1996. It has created thousands of jobs, supported business, developed the service sector, and helped give global recognition to Noida. Today’s MoU is yet another step in converting Noida into the electronics hub of India.”
Would like to thank Samsung for their 2000 crore investment in UP for the expansion of their plant thru our Industrial Policy. pic.twitter.com/CdwQiYpwlC
— Akhilesh Yadav (@yadavakhilesh) October 17, 2016
The expansion announcement in India comes at a time the company struggling in the global market after reports of its Galaxy Note 7 smartphone explosion.
Samsung had recalled millions of Galaxy Note 7 smartphones after reports revealed that its battery catching fire. The company later stopped producing the device after errors reported even from the replaced phones.
Samsung Electronics on Friday said it expects a negative impact of around $5bn on its profit due to the discontinuation of Galaxy Note7 sales.
Meanwhile, the US and Japan have banned the device from aeroplanes citing the risk of fire.