Foxconn expects full production to return in China by end of month
More than 50 per cent of the staff normally working at this time of year have returned to work
Apple supplier Foxconn has stated that it expects its China-based production capacity to return to normal seasonal levels by the end of this month, as it increases efforts to end the disruption caused by the coronavirus outbreak.
Chairman Liu Young-way said that more than 50 per cent of the staff normally working at this time of year had returned to work.
This comes as the world’s largest contract electronics manufacturer is encouraging bringing production lines back into full service after local authorities in parts of China changed their priorities from restricting movement to limiting economic damage.
The share price of Hon Hai Precision, the group’s Taiwan-listed flagship, has dropped 10 per cent since the start of the year amid fears that weeks of factory closures could cripple the global technology supply chain.
According to an employee at the Longhua campus in Shenzhen, one of the group’s largest plants, staff there are currently working seven days a week.
The labour shortage was created by various restrictions imposed by local and regional governments on the movement of people, trapping millions of migrant workers away from their jobs.
Foxconn said it could not yet estimate how the outbreak would impact its full-year financial performance, although it did warn last month that there would be a negative impact.
It did, however, forecast a double-digit percentage drop in revenue for the first quarter, saying that revenues from manufacturing consumer electronics products, enterprise services and computing products would fall more than 15 per cent compared with the previous quarter and the same period last year.
Optimistically, the company indicated that it expects the production disruption to delay rather than entirely derail operations.
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