Samsung Group, the Republic of Korea's largest industrial conglomerate, announced Tuesday that it aims to achieve sales of US$31 billion this year in China, a rise of 18.4 percent over last year.

 

China Samsung, the China subsidiary which is mainly engaged in electronics production, forecast an increase in investment in China by 8 percent over last year with the company's accumulated investment reaching US$5.1 billion.

 

China Samsung reported sales of US$25.3 billion last year.

 

The China market accounted for 22 percent of Samsung Group's global sales by the end of 2004, said sources with the company. As China's share increases, Samsung Group is expanding its China operations.

 

Earlier this year, China Samsung announced it would increase its procurement in China to US$18.5 billion within the year, a 20-percent rise over US$15.3 billion last year.

 

Local procurement could help Samsung reduce costs and win a market advantage, said Keun-hee Park, president of China Samsung.

 

Last December, China Samsung moved its International Procurement Center in Hong Kong to Shanghai and renamed it China International Procurment Center. Meanwhile, it launched ten international procurement offices in China, including Hong Kong, Shenzhen and Tianjin.

 

On May 22, China Samsung started a website to disclose procurement information to suppliers. Samsung China has 4,629 suppliers, 78 percent of them Chinese companies.

 

(Xinhua News Agency June 14, 2006)