SEOUL, South Korea Samsung Electronics said Friday (Nov. 10) its Indian subsidiary has signed an agreement with an Indian state government creating a manufacturing complex for consumer electronics as part of a $100 million investment over the next five years.
Under terms of the deal between Samsung India Electronics and the state of Tamil Nadu, Samsung expects to launch construction in Chennai in January 2007. It aims to launch commercial operations by August.
The complex will initially produce color TVs and monitors. Annual production capacity is expected to be 1.5 million and 1 million units, respectively. Production will eventually expand to home appliances, printers and other consumer products.
"We expect to manufacture advanced LCD TVs and LCD monitors in this complex as well," said R. Zutshi, managing director of Samsung India Electronics. Samsung will employ about 2,500 workers.
The Indian complex will become "a global manufacturing hub for Samsung and will be manufacturing products at this facility not only for the domestic market but for the export markets as well," said S. H. Oh, CEO and president of Samsung's Southwest Asia unit.
The Chennai complex is Samsung's second consumer electronics manufacturing base in India. A plant in Noida produces color TVs and monitors and appliances. Samsung also operates an R&D center at the Noida complex.