Published: Tue, February 11, 2020
Money | By Ethel Goodwin

Apple device maker Foxconn restarts key China plant with just 10% workforce

Apple device maker Foxconn restarts key China plant with just 10% workforce

According to a new Reuters report, the Zhengzhou factory is now once again available for work, but the factory in Shenzhen remains closed.

According to a memorandum acquired by Bloomberg, Apple iPhone manufacturer Foxconn has actually advised its workers to stay clear of returning home after the Chinese New Year expanded break, which was anticipated to upright February10 This, after Foxconn anticipated to resume on February 9.

On the other hand, a later report from Reuters noted that Foxconn was given the green light to open its other plant in Zhengzhou and possibly Shenzhen as well, although thus far only 10% of its workforce has actually shown up for work.

Those two factories are the main players in Apple's iPhone production machine with their closure - and the knock-on impacts that will cause throughout the supply chain - likely to result in lower global iPhone shipments than had previously been forecast. But only about 10 percent of the workforce - or about 16,000 people - were reportedly able to return to their jobs.

Market research firm Trendforce cuts its March quarter iPhone production forecast by about 10% to 41M. This plant was scheduled to resume production on February 2 but that has been delayed by at least a week.

Foxconn, formally Hon Hai Precision Industry Co Ltd, said in a statement that employee safety was top priority and that it was working with authorities to meet requirements to resume production across China "in a staggered and orderly manner".

The coronavirus outbreak - declared a global health emergency by the World Health Organization - has disrupted Chinese manufacturing and forced companies such as Hyundai Motor to halt production of cars in some factories.

As a part of the control measures to reduce the potential exposure to the virus, the workers at Foxconn's facilities are mandated to wear masks, adhere to a safe dining system, as well as undergo temperature checks.

The popular device maker for global OEMs has set up production lines in the southern province of Guangdong to manufacture masks for its huge employee base, aiming to make a whopping two million masks daily after reaching full capacity towards the end of this month, the memos revealed.

Its Shanghai plant, which produces Apple's iPhone 11 series while also serving as a development center for upcoming models, has resumed 90 percent of its production on Monday last week, Kuo said.

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