Samsung loses cash on power cut

Samsung is going to lose a lot of cash after it had to shut down four production lines because of a power cut.

Yesterday four flat-screen production lines had stopped briefly due to a power outage.

While the power cut only stopped the lines for 10 minutes, even a short stop can make the panels obsolete.

More than 70 percent of panels which were in the process of being made will have to be put in the rubbish bin.

Samsung shares fell three percent on the back of the news. However there was a 0.7 percent decline in the broader market so some of that would have to be factored in.

Samsung has restored its product lines to 60 percent of production and expects the lines to return to full output later today.

The lost output was mainly large-sized panels for TVs and computer monitors. There are a fair few of these in the market due to weak consumer demand so the shut down is unlikely to cause a panic.

Reuters said that the plant in Tangjeong, southwest of Seoul, houses Samsung’s most advanced LCD production lines. The four lines have a combined monthly output capacity of 320,000 panels.