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Foxconn is building a new plant in Central China. The plant, to go online next year, will produce 200,000 phones a day and help relieve the company's production shortages.  (Source: Xinhua)

The plant will largely produce Apple iPhones.  (Source: Mac Rumors)
New factory should help improve employee working conditions

In its bid to improve the working conditions of its employees, in the wake of a string of suicides, Taiwan's Hon Hai Precision Industry has raised the pay of employees at its Chinese subsidiary Foxconn.  Now it's announced more good news for Foxconn employees.

Foxconn's subsidiary (yes, the subsidiary of the subsidiary) Futaihua Precision Electronics will build a new $100M USD plant in central China's Henan.  That plant will employ almost 200,000 workers, will produce 200,000 phones daily, and will yearly produce $13B USD worth of exports.  Previously the plant had been rumored based on job postings, but unconfirmed.

The plant should also improve working conditions for the Foxconn employees in a variety of ways.  First, it will allow some migrant workers to relocate closer to home.  Second, its production should help to ease the pressure to work overtime currently put on employees in order to satisfy demand.

The plant will be named "Pingzhen".  Lin Zhenghui, deputy general manager at the new plant describes, "In this name, 'Ping' means peace and 'Zhen' means calm. We will strive to make the 'town' peaceful and prosperous."

Among Foxconn's biggest customers is Apple, Inc.  Foxconn and its subsidiaries manufacture the best-selling iPhone, iPad, and iPod mobile devices.  The new plant is expected to largely produce iPhones.

Construction will start August 20, and Chinese news agency Xinhua reports that 500 employees have already went to work at a temporary site rented from the Zhengzhou city government.  The construction should be complete and the plant fully operational within a year's time.

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RE: Angry Foxconn Employees
By InternetGeek on 8/3/2010 6:45:26 PM , Rating: 5
Actually, I read Foxconn is starting to measure the price of the phones in new unit: Phones/Human. It's a measure of CAPEX if you will. It says you need to spend a certain number of humans to produce a given number of phones.

It's been shown that shareholders and the public in general can understand Foxconn's processes better when representing figures this way because it removes distractive factors such as employees throwing themselves out the window.

So everytime they spend a human to produce phones, they just fill in a CAPEX form to get another one. The benefits of the new process is that said spent human removes himself from the facilities. There are no longer any OHS issues (people throwing themselves off the windows or so). And overall, Foxconn is adding more value to their customers.

Have a nice day.

RE: Angry Foxconn Employees
By DarkElfa on 8/3/2010 7:22:08 PM , Rating: 5
I think its only reasonable that Apple and China have such a god working relationship. I mean they share the exact same views of personal rights and civil liberties.

RE: Angry Foxconn Employees
By SublimeSimplicity on 8/3/2010 7:28:56 PM , Rating: 4
Jobs definitely has a God complex, don't know about china though.

RE: Angry Foxconn Employees
By dflynchimp on 8/3/10, Rating: 0
RE: Angry Foxconn Employees
By phatboye on 8/3/2010 8:30:49 PM , Rating: 2
but Foxconn's policies, if you actually read them rather than listening to the biased western media bashing, are far from whatever hellishness you might imagine it to be.
That's why so many of Foxconn's employees are killing themselves? How about the reports of low wages and long work shifts?

RE: Angry Foxconn Employees
By dflynchimp on 8/3/2010 11:31:11 PM , Rating: 1
Which reports? Does any of them provide proof that Foxconn's wages and shifts are in any case deviant from the other factories in China?

Average wages of $108 a month, which is actually less than Foxconn's initial minimum of $130 ( )

Take into account Foxconn has since hiked their wages by up to 30%, so that disparity between them and industrial average is actually higher, and in their favor.

Oh, and suicide compensation? Yeah, Foxconn is one of the few companies in China that even has those provisions. Most factories are more "pragmatic". Some worker dies? Hire a new one, pretend the old one wasn't there at all.

RE: Angry Foxconn Employees
By Solandri on 8/4/2010 1:37:29 PM , Rating: 2
That's why so many of Foxconn's employees are killing themselves?

The whole flap over suicides is a media fabrication. They've had 10 suicides in a half year at a factory site which employs 420,000 people. That's a suicide rate of 4.8 per 100k per year. That's lower than the suicide rate among urban Chinese in the age group of most of the employees (about 5.9). Almost as low as the overall rate for the U.S. in that age group (4.2), and lower than in many Western European countries (e.g. France 5.3). (I had a link to the WHO website with these stats, but for some reason the board keeps insisting it's spam.)

Basically, the suicide stuff is a non-story, promulgated by lazy journalists committing a false dilemma fallacy. By publishing the story without any context, they trick the reader into comparing the suicide rate at the plant to zero. When in fact they should be comparing the suicide rate at the plant to the suicide rate of the general population in the area.

RE: Angry Foxconn Employees
By crleap on 8/4/2010 12:04:42 AM , Rating: 1
Religion has ALWAYS since the beginning of time been about power and influence. A few figure out how to wield it, and the masses follow. Ever since the "priests" in Mesopotamia figured out how to predict the Nile floods, there has been a mystical theological leader and those who don't understand, so follow.

"Death Is Very Likely The Single Best Invention Of Life" -- Steve Jobs

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