It was late September when Samsung closed the Huizhou plant in Guangdong, the last remaining smartphone production plant in China. In August 1992, the company signed a joint venture agreement with Huizhou Municipal Government at the time of diplomatic relations between Korea and China.
Samsung Huizhou Factory in China.
Chinese media reported that Samsung withdrew "decently." Not only did they recognize the jobs of retirees, but they also comforted their employees who were leaving due to retirement payments and brand watches that no Chinese SMEs did.
Restaurant Guests banks falling convenience store sales plunged 80%
Real estate 4.8 million yuan from 1 million yuan fall pray
Huizhou October, exports fell 27% in 14 billion yuan
listed only expected to close more than 100 factory gates Guangdong
However, Huizhou's scenery after Samsung's departure seems to be painful. The Hong Kong South China Morning Post said the Huizhou community is paying huge costs due to the closure of the Samsung plant.
“Before Samsung left, our sales rose from 60,000 yuan to 70,000 yuan a month, but now we only have two or three table customers a few hundred yuan.” A small restaurant near Samsung Huizhou factory That's what Living is running.
"The consumption of local residents is almost dying," said Lee, a convenience store owner. "Revenue has fallen by 80% since August, when a farmer who worked at a Samsung factory since September left. I lost. ”
"Are there any pharmacies, supermarkets, restaurants, convenience stores, internet cafes, homes, hotels, or even adult stores that didn't depend on Samsung workers?" It is no exaggeration to say that Samsung has actually fed Huizhou's economy for nearly 30 years.
Samsung's Huizhou plant invested $ 32 million in 1993 to produce a variety of popular electronic products. Stereo in the 90s, MP3 players in the 2000s, and smartphones since 2007. In 2011, the company produced and exported 701.4 million smartphones.
There are more than 100 six- and seven-story buildings to accommodate people working at Samsung. However, after Samsung left home prices fell from 4.8 million yuan in August alone to a million yuan. Still nobody is interested.
Huizhou's economy also had dark clouds. In October, the first month Samsung pulled out, exports were only 14 billion yuan, down 27% year-on-year. Considering the fact that Samsung mobile phone imports and exports accounted for 31% of Huizhou's total imports and exports in 2017, we can guess the impact.
The aftermath of the Samsung plant's closure also extends to Dongguan, 100 kilometers from Huizhou. Guangdong Jingcheng Intelligent Group, a famous Chinese robot company that has been dealing with Samsung Huizhou factory since the early 2000s, was hit by a direct hit.
The company posted a deficit of 2.8 billion yuan last year, as Samsung has not placed orders in Jingcheng since the fourth quarter of last year. In September, when Samsung left, it had to hand over a large portion of its stake to another company.
In early December, the company's employees are encouraged to take three months off. Or you work one day and take two days off. One employee said, "I just go to work and work for about four hours, and I do not have time for the rest.
Since last month, about 3,000 people, or two-thirds of all employees, have been asked to leave the company. It was a thousand years ago to rent more than 40 six- and seven-story housing units to accommodate more than 10,000 employees.
"The Samsung Huizhou plant has been building an entire supply chain ecosystem covering Guangdong and its neighboring provinces for the last two decades, so after Samsung leaves, at least 100 plants are expected to close in Guangdong Province," said Liu Kaiming. The director of the Institute for Social Observation at the time analyzed.