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Hon Hai's Zhengzhou plant reportedly receives orders from Huawei

2019/02/18 20:46:22

Taipei, Feb. 18 (CNA) Taiwan-based Hon Hai Precision Industry Co., one of Apple's biggest suppliers, has received orders for unspecified products from controversial Chinese brand Huawei, which are expected to give its Zhengzhou plant a boost, according to Chinese media.

Citing sources close to Hon Hai, known as Foxconn globally, in the global market, an internet report on China's Pear Video network said Sunday that the company's Zhengzhou plant in Henan province will benefit from the new orders.

The Zhengzhou plant, which assembles iPhones for Apple and had been thought to be laying off workers because of weakness in iPhone sales, began interviews for new employees on Feb. 11, the report said.

Hon Hai is expected to add about 50,000 new workers to its Zhengzhou plant's production lines, according to the sources cited by the story.

There was no mention of the type of product Huawei was ordering.

In addition to the Zhengzhou plant, Hon Hai's Shenzhen facility in Guangdong province has also been recruiting new workers since the end of the Lunar New Year holiday, and may hire as many as 20,000 people, the sources said.

Similar recruitment campaigns have been launched at Hon Hai's Hengyang and Taiyuan plants in Hunan Province, its Huaian plant in Jiangsu province, and its plant in Kunshan, a county-level city in southeastern Jiangsu province, the sources said.

Monthly pay for the new workers at those production sites will range between 4,000 Chinese Yuan (US$591) and 5,000 yuan a month, according to the report.

Despite falling demand for iPhones in the global market, Hon Hai reported NT$1.81 trillion (US$58.71 billion) in consolidated sales for the fourth quarter, the highest for any quarter in the company's history.

Its consolidated sales also hit a new annual high of NT$5.296 trillion in 2018, and its January 2019 sales were up 3.37 percent from a year earlier to NT$400.61 billion.

Despite the positive sales data, Hon Hai's stock price has remained sluggish because of lower-than-expected iPhone sales in a market that appears to be saturated.

Hon Hai shares closed up 1 percent on Monday at NT$71.00, up only about 0.3 percent since the beginning of the year, compared with the 4.7 percent year-to-date rise seen by the TWSE's electronics sub-index.

(By Chung Jung-feng and Frances Huang)