Hon Hai Precision Industry Co (鴻海精密), an assembler of Apple Inc’s iPhone devices, yesterday said it will continue to look at investment opportunities in Indonesia after it is reported to have canceled plans to invest in a manufacturing plant there.
Citing Indonesian Chamber of Commerce and Industry Chairman Suryo Bambang Sulisto, Indonesian daily Kontan said that Hon Hai has decided to withdraw its planned investment of US$1 billion from the nation because the Indonesian government reportedly rejected a company request for free land.
Hon Hai, also known as Foxconn Technology Group (富士康), declined to confirm or deny the report.
“As we have stated on a number of occasions, Foxconn would consider investments in Indonesia or other markets only if they made commercial sense,” Hon Hai said in a statement.
The company last year said it planned to invest US$1 billion in a manufacturing plant in Indonesia to produce hardware such as smartphones, tablets and televisions.
A source in Hon Hai, who declined to be named, told the Taipei Times that talks with Indonesian authorities had stalled the company’s investment progress in the nation.
“We are still seeking investment opportunities in the country, but officials there have kept changing their minds over Foxconn’s planned investment,” the source said.
Elsewhere, Hon Hai’s investment license in Hanoi was revoked by the Vietnamese government in July after the company failed to make any progress on a US$200 million investment project.
The company received the license to build a plant to assemble smartphones in February 2008 and was to begin operations in 2009.
However, it has not yet started construction of the factory.
Hon Hai said it had a mutual agreement with the Vietnamese government that if the company had not made progress over the plant, the government could revoke Hon Hai’s license.
Separately, Hon Hai is reportedly to invest US$65 million to US$70 million in India’s refurbished online shopping site Greendust.
Hon Hai declined to confirm the investment amount in Greendust, but said the investment is part of the firm’s plan to expand its reach in India.
Hitendra Chaturvedi, founder and chief executive officer of Greendust’s parent company, Reverse Logistics, was quoted by the Hong Kong-based Economic Times as saying that Reverse Logistics is in talks with Hon Hai over the deal, which is yet to be finalized.
Hon Hai’s stock price fell 2.92 percent to NT$89.8 in Taipei trading yesterday, underperforming the TAIEX, which lost 1.92 percent.
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RSS