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Foxconn's Chengdu, China plant has reopened two weeks after being struck by deadly explosions.  (Source: M.I.C. Gadget)

The factory is responsible for production of Apple's iPad 2.  (Source: Apple)
It's back to work for Chinese migrants laborers toiling at one of Foxconn's many Apple-centric plants

Poor maintenance at a plant in Chengudu, capital city of China's southern Sichuan province, is believed to have led to an explosion, which tragically took the lives of three Chinese labors.  The explosion was the latest setback for embattled Hon Hai Precision Industry Co Ltd. (2317) subsidiary Foxconn, who manufactured Apple Inc.'s (AAPL) iPad 2 at the facility.  Foxconn last year saw a string of suicides [1][2][3] that highlighted poor working conditions at the company's Chinese plant [1][2].

After an almost two weeks shutdown, the plant has been reopened.  Even as iPad 2 production resumes, Foxconn promises it will try to track down the issues that caused the explosion and install safeguards to prevent future incidents.

Writes a company spokesperson:
While the investigation into the tragic explosion that took place at our facility in Chengdu is ongoing, we have addressed the preliminary finding, that the accident was likely due to an explosion of aluminum dust in a ventilation duct, by putting in place improvements in workshop ventilation, a total revamping of the policies and practices related to the disposal of that dust, and through the application of new technologies that will further enhance the safety in these workshops.

The new measures we are employing in our workshops, which have resumed operation following the review referred to above, are a direct response to our efforts to ensure that we are applying the highest possible safety practices. Should the investigation identify any additional areas where enhancements could be made, we will not hesitate to immediately implement those measures.
Ticonderoga Securities analyst Brian White writes in a note to clients that the explosion may not significantly set back Apple's iPad 2 production, as it is constrained by other, unrelated factors.  He comments:
Our meetings today indicate that the Chengdu facility has been held back by yield issues on certain outside components; thus, the operation may not have reached the optimal utilization rate.  Therefore, the explosion in Chengdu may result in more of an equilibrium situation with certain component vendors, rather than a shortage situation. Netting this all out, we believe the production of iPad 2 will be supply constrained during the June quarter; however, we are not prepared to place the bulk of the blame on the Chengdu operation.
The iPad 2, a device Apple CEO Steven P. Jobs refers to as "magical" sports a number of upgrades from its predecessor, including a dual-core ARMv7 processor, cameras, and an improved PowerVR GPU from Imagination Technologies Group plc (LON:IMG).  The iPad 2 also is 15 percent lighter and 33 percent thinner, taking even Apple's competitors by surprise.

In other iPad related news, China's public was outraged to learn that a teenager sold one of his kidneys to buy an iPad 2, a popular status symbol among Chinese youth.

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This article is over a month old, voting and posting comments is disabled

By messele on 6/4/2011 3:51:08 AM , Rating: 0
Congratulations, hope you didn't cheat and look that one up (did it make the news in the US?). The lifesize Millennium Falcon prop was built in a boat hanger just a short distance away in Pembroke Dock.

Chevron is an American multinational, but still American by ownership and that is where they are based.

BP was a multinational too...until they pumped shit all over the Gulf of Mexico, then they strangely became purely British again (they were British Petroleum before the merger with Amoco). Weird how that works for one but not the other.

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