Foxconn shelves US$100m project in Dongguan
- By He Shan
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China.org.cn, November 3, 2011
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Foxconn's new plant in Dongguan, Guangdong Province, hasn't started operations as scheduled. [File photo] |
Foxconn's new plant in Dongguan, Guangdong Province, hasn't started operations as scheduled, leaving the project up in the air, a local government official said.
In January, Foxconn signed an agreement with Huangjiang Town in Dongguan for a 100,000-square-meter factory to produce components of small- and mid-sized touch screens and flat panels for export.
Foxconn hasn't commented on the delay, but industry insiders and analyst said shrinking demand in foreign markets is a likely factor in the firm's decision-making.
The project would cost Foxconn US$100 million, with an investment of US$25 million, the local government said.
According to the plan, the plant was supposed to begin production in March and expected to generate revenue of US$100 million this year.
"The plant is set up to manufacture products for the overseas market," said a former employee at an area Foxconn plant. "The tablet market has cooled down as tablet devices are losing their luster and the Eurozone debt crisis is taking a toll on consumption."
Foxconn declined to comment on the plant.
China's business press carried the story above on Thursday.
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