No plans yet for Samsung manufacturing plant

02 Dec, 2013 - 00:12 0 Views

The Herald

Business Reporter
Global company Samsung Electronics will delay plans to establish a manufacturing plant in the country because of the limited variety of products and solutions offered in the country but will set up a technical workshop which will enable service backup.
The global technology company recently signed a Memorandum of Understanding with an indigenous company, Line Products and Services (Pvt) Ltd, which would see the two parties providing business to business and business to Government solutions to the country.

In a statement released last week, LPS said it was too early to establish a plant considering the variety of products they offered.
“Line Products & Services is the official distributor for Samsung products. There are a variety of products on the portfolio that include solar-powered internet schools, smart school solutions, solar-powered health centres, print solutions, security and monitoring control solutions and hospitality display solutions.

“With the variety of products and solutions that we have to offer, it is premature to establish a manufacturing plant in Zimbabwe,” the company said.

During the signing of the MoU, LPS chief executive Mr Cleo Mathabire said the two companies had agreed that LPS would invest 40 percent with the global technology giant contributing 60 percent for the setting up of the plant which would cost more than US$3 million.
Samsung has been operating in Zimbabwe since 2011 as a retailer for technological gadgets ranging from television sets to mobile phones.
LPS said Samsung would, however, set up a technical workshop in the future to enable service back-up and promote the creation of jobs and expertise for local technicians.

Samsung has expressed its willingness to engage Government and said that the business conditions in the country are now viable to start their operations. The company has been facing challenges in penetrating the Zimbabwean market due to the influx of imitations being brought into the country from Dubai and other countries. LPS also said that there will be a Smart government forum in February next year where they will be discussing with all Government officials on the way forward on implementing business to government solutions.

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