Samsung to build textile industrial park in Chongqing

Samsung Group, in cooperation with Shandong Ruyi Group, will invest $21.5 million in Chongqing municipality to build a textile industrial park in Southwest China.

Industry experts say Samsung's new investment is aimed at diversifying its production line, which could offset the slowdown in its electronic business.

As the core business sector of Samsung Group, Samsung Electronics is battling to maintain high profits recorded in the last quarter amid fierce market competition, and analysts say the downturn at Samsung Electronics will affect profitability of the whole group.

"Due to the soaring cost of raw materials, and sluggish electronics consumer conditions, most international electronic enterprises' profits slumped this year, while the textile industry has suffered a downturn since last year," said Zhang Maoye, industry analyst at Essence Securities.

Zhang added that the new move by Samsung is a risky investment.

China Daily-Agencies