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Hon Hai opens $100 mln plant in China's Henan
Tue, Aug 03, 2010
Reuters

HONG KONG - Taiwan's Hon Hai Precision Industry Co Ltd , also known as Foxconn Technology Group, opened a new $100 million production factory in the central Chinese province of Henan, as the group began to move production inland in a bid to cap rising labour costs, according to a state media report.

The new plant, which began production on Monday, was owned by subsidiary Futaihua Precision Electronics (Zhengzhou) Co Ltd and would mainly produce Apple Inc's iPhone, Xinhua news agency reported on Monday, citing an agreement between the Taiwanese group and the government of Zhengzhou, Henan's capital city.

Construction of a permanent plant would begin later in August at a site several kilometers away, Xinhua said, adding that the plant was expected to begin production in a year.

The plant would generate more than $13 billion in annual exports, with a production capacity of 200,000 handsets per day and nearly 200,000 employees, it said.

Hon Hai, which has plants in the inland regions of Hebei, Shanxi, Hubei and Chongqing, had also invested in two factories in Chengdu, capital of Sichuan Province, and was in talks with the provincial government to open about 2,000 retail outlets selling IT products and home appliances to diversify its business model, Xinhua said.

In June, Xinhua reported that the technology group planned to build a huge new facility in Henan that would eventually employ 300,000 people.

A source told Reuters that Hon Hai, parent of Hong Kong-listed Foxconn International Holdings Ltd, would also build two factories in inland China in the face of rising labour costs in southern China. HONG KONG, Aug 3 (Reuters) - Taiwan's Hon Hai Precision Industry Co Ltd , also known as Foxconn Technology Group, opened a new $100 million production factory in the central Chinese province of Henan, as the group began to move production inland in a bid to cap rising labour costs, according to a state media report.

The new plant, which began production on Monday, was owned by subsidiary Futaihua Precision Electronics (Zhengzhou) Co Ltd and would mainly produce Apple Inc's iPhone, Xinhua news agency reported on Monday, citing an agreement between the Taiwanese group and the government of Zhengzhou, Henan's capital city.

Construction of a permanent plant would begin later in August at a site several kilometers away, Xinhua said, adding that the plant was expected to begin production in a year.

The plant would generate more than $13 billion in annual exports, with a production capacity of 200,000 handsets per day and nearly 200,000 employees, it said.

Hon Hai, which has plants in the inland regions of Hebei, Shanxi, Hubei and Chongqing, had also invested in two factories in Chengdu, capital of Sichuan Province, and was in talks with the provincial government to open about 2,000 retail outlets selling IT products and home appliances to diversify its business model, Xinhua said.

In June, Xinhua reported that the technology group planned to build a huge new facility in Henan that would eventually employ 300,000 people.

A source told Reuters that Hon Hai, parent of Hong Kong-listed Foxconn International Holdings Ltd, would also build two factories in inland China in the face of rising labour costs in southern China.

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