Tue, Jun 29, 2010 - Page 12 News List

Foxconn plans new factory in China

BLOOMBERG

Foxconn Technology Group (富士康), the contract maker of Apple Inc iPhones and Hewlett-Packard Co computers, plans to establish a factory with 300,000 workers in Henan Province, the local government said.

The company is looking to hire about 100,000 workers in the near-term from Henan Province who will be sent for training at Foxconn’s facilities in Shenzhen, the Hebi city government said in a statement on its Web site on Friday.

After completing training, the workers will have the option of returning to work in Henan, the statement said.

Foxconn’s plans for the Henan factory come after at least 10 of its employees in Shenzhen committed suicide this year, spurring the company to hire counselors, install netting on buildings and double pay for its workers in the city.

CHANGING STYLES

The Taipei-based company last week hired outside managers to run employee dormitories in Shenzhen in what it called a shift to a “more open” style of management.

Of the 800,000 workers Foxconn has in China, 157,000 of them are from Henan, the Henan Daily reported last Thursday, citing an unidentified provincial government official.

Henan, China’s largest province by population, is home to almost 100 million people.

Individuals hired by Foxconn will work eight hours a day, five days a week, the Hebi government said in a statement on its Web site.

OVERTIME MAXIMUM

Workers may work a maximum of three hours overtime each day. They must also have at least one day per week off, the statement said.

The minimum basic salary for new workers will be 1,200 yuan (US$177) a month.

This will increase to 2,000 yuan after three months if individuals pass an examination, the statement said.

The Web site statement didn’t say where the Foxconn factory would be located, when it would begin operations or any other details.

Calls to Foxconn spokesman Edmund Ding (丁祈安) yesterday seeking comment weren’t immediately answered.

Shares of flagship unit Hon Hai Precision Industry Co (鴻海) closed flat at NT$120.5 in Taipei yesterday.

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