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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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