Samsung announces US$70mn plant expansion in Tijuana

Tuesday, May 3, 2011

Samsung Mexico has invested US$70mn to expand its plant in the northern city of Tijuana with expectations of bringing total investment in the plant to US$100mn, according to local media outlet El Economista.

By year-end, Samsung will have generated 5,000 direct jobs and 7,000 indirect jobs in the 23 years it has been established in Tijuana, according to Samsung Mexico VP Hiram Monsiváis.

One of the expansion's objectives is to create vertical integration - manufacturing not only products such as televisions at the plant, but also the subassemblies to save time and increase productivity.

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With the expansion, the company aims to produce 12mn products annually at the plant, mainly flat screen televisions with up-to-date technology such as Smart TVs, which are equipped with computer applications.

Monsiváis called this goal "ambitious" because Samsung's competition is reducing production demands while it continues to increase them, with an operation of US$6bn a year. According to the executive, production numbers increased even in the face of the economic crisis, with 8mn products pumped out in 2008, 9.4mn in 2009 and 10.6mn in 2010.