Samsung Group has laid out a five-point plan to spend over $21B on growth areas through 2020, focusing on greener energy and medical technologies.
May 11, 2010 – Samsung Group has laid out a five-point plan to spend 23.3T won (US $21+B) on growth areas through 2020, focusing on greener energy and medical technologies.
At the heart of the 10-year plan, with overall goals of achieving 50T won ($44B) in sales and creating 45,000 new jobs, are five new targeted areas:
- Solar. 6T won (~$5.3B), initially focusing on thin-film technologies. 2020 target: 10T won ($8.8B) sales, 10,000 new hires.
- LEDs. 8.6T won (~$7.6), including areas such as displays for battlefields. 2020 targets: 17.8T ($15.7B) sales, 17,000 employees.
- Electric vehicles. 5.4T won ($4.7B) to develop and market rechargeable batteries for electric vehicles. 2020 targets: 10.2T ($9.0B) sales, 7600 employees.
- Biopharmaceuticals. 2.1T won (~$1.8B) investment. 2020 targets: 1.8T won ($1.6B) sales, 710 employees.
- Medical devices. 1.2T won (~$1.1B), for areas such as blood analysis and external diagnosis tools. 2020 targets: 10T won ($8.8B), 9500 employees.
The 45,000 jobs represent about 16% of the company’s current workforce today; the 50T won in 2020 projected sales compares to an estimated 200T won ($176B) in 2009 groupwide revenues.
“When other global companies hesitate, we must move ahead decisively to take this opportunity, and this will also benefit the country’s economy,” said company chair Lee Kun-hee, to a meeting of the company’s electronics and medical affiliates, notes the Associated Press. Company exec Rhee In-yong noted that “marketability was a top consideration” in coming up with the list of five, as the company sees environment, energy, and healthcare markets among the top industries over the next decade.