Samsung Stops Plans To Build Manufacturing Plant In Nigeria

* Pix source: Sanvada

 

…Cites Small Market Share, Low Return On Investment, Infrastructure

Samsung, the electronics giant has attributed its decision not to build a manufacturing plant in Nigeria to its small market share and low Return On Investment (RON).

This was disclosed by the Chief Executive Officer of Samsung Electronics, Africa, Sung Yoon at a media parley in Lagos yesterday.

The Samsung, Africa boss stated that manufacturing a mobile phone requires 400 components and that none of these components is present in Nigeria

Yoon lamented that despite the fact that Samsung was the leading consumer electronic company in the country, the company’s market share is very small when compared to its market share in South Africa, adding that while the organisation’s smart phones market size in South Africa is 80 per cent, that of Nigeria, he said is very small despite having a population of 180 million.

Yoon listed few of the factors militating against having a manufacturing plant in the country despite its huge market size to include: Return On Investment (ROI), infrastructure and grey market.

According to him, “We are trying to be a local company here. Building factory depends on return on investment and efficiency of the economy. There are lots of grey products coming into the country and this will affect the return on investment.”

The Samsung boss gave the names of countries where the company has manufacturing plants to include: China, Korea, South Africa and Vietnam but that that of Nigeria will be in the company’s future plan.

Samsung, he disclosed spent annually $16 billion globally on Research and Development (R&D), sells over 700 mobile phones every minute and over 41,000 every hour, globally.

On the company’s vision, he stated that the vision was to inspire the world and create the future, using innovative technologies, products and designs that enriched people’s lives and contribute to social prosperity.

He appealed to Samsung distributors and dealers in the country to endeavour to inform the company of their sales drives to enable it fashion out products accordingly.

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