Langfang is not the only choice of Foxconn
Taiwan Foxconn Group said on July 1st that, to save the cost of labor, Foxconn Group will move the main production line to Langfang, Hebei province from Shenzhen. Spokesman of Foxconn Tong Wenxin said the move is anticipated to be finished by the end of the year, when only part of the production capacity will be remained in Shenzhen. She also said the increase of depreciation expense relating to the move will affect the performance of the first half year.
Foxconn’s 2009 financial statement shows, as of the end of 2009, Foxconn’s employee number had reached 118,700, up by 9.7% compared with 108,200 persons of 2008. However, the cost of labor had been decreased to 485 million US dollars in 2009 from 672 million US dollars in 2008, down by 28%.
In June, Foxconn announced pay rise for its production line workers by 30% and another pay rise within only five days, soon after which, Tong Wenxin announced Foxconn will move to Langfang. Except Langfang, some media also said relevant department of Henan provincial government has signed agreements with Foxconn and now is recruiting workers and building factories for Foxconn. Some even said the workers recruited have to intern in Shenzhen Foxconn.
According to the introduction of an engineer, surnamed Li who will quit due to the move to Langfang, more than ten engineers on the production line will quit at the end of this year for the reason that they don’t want to leave Shenzhen.
Shenzhen Post Elaine Contributed to the Story.
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