Hon Hai Precision Industry Co (鴻海精密) yesterday said it has reached a deal to sell land, property, machinery and equipment at a plant in Lordstown, Ohio, to an existing business partner for US$375 million, as the company continues efforts to revitalize assets and optimize the product portfolio and operational performance of the plant.
The iPhone assembler and artificial intelligence (AI) server maker said in regulatory filings that it expects to book NT$169.36 million (US$5.7 million) in disposal gains from the deal with a company called Crescent Dune LLC, adding that it would reinvest the proceeds in its US operations and continue to be involved in the manufacturing of products for customers at the site.
Hon Hai, also known as Foxconn Technology Group (富士康科技集團), purchased the plant in 2022 from the now-bankrupt US electric vehicle start-up Lordstown Motors Corp.
Photo: Reuters
In a separate statement, the company said it has operations in six US states, with businesses covering four primary product segments: cloud and networking, smart consumer electronics, computing, components and other products.
Hon Hai highlighted significant growth in its cloud and networking business, adding that its broad business scope allows it to rapidly ramp up production and flexibly to meet customer demand.
Hon Hai said it would share more details about its US strategy in the coming months.
The latest sale came after the company last week announced it was forming a strategic partnership with industrial motor maker Teco Electric and Machinery Co (東元電機) through a share exchange to tap into the global AI data center market.
The companies expect global customers to benefit from their collaboration in terms of comprehensive data center modular products, electromechanical engineering services and cost-competitive, one-stop solutions, their joint statement said on Wednesday last week.
Analysts said the Lordstown plant is six times larger than Hon Hai’s new Houston plant, reflecting the site’s high business potential and asset value.
The deal is expected to help Hon Hai improve asset turnover efficiency and enhance its cash flow, while preserving space for manufacturing high-value-added AI applications and for expanding an AI data center business, analysts added.
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