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Production At Full Capacity At Its COVID-Hit China Factory To Start Late Dec-Early Jan, Anticipates Foxconn

Production At Full Capacity At Its COVID-Hit China Factory To Start Late Dec-Early Jan, Anticipates Foxconn
Foxconn , the largest contract iPhone maker for Apple, anticipates that its resumption of full manufacturing at its COVID-affected Zhengzhou factory will be possible at around late December to early January, according to reports quoting a Foxconn source.  Production at the factory was disrupted last month after a major worker unrest. This is the world's largest iPhone factory. 
The Zhengzhou plant has been dealing with strict COVID-19 restrictions, which have fueled worker dissatisfaction with factory conditions. Production of the Apple (AAPL.O) device was halted ahead of the Christmas and Lunar New Year holidays, with many workers either being forced to isolate to prevent the virus from spreading or leaving the factory.
Following the November unrest, which saw workers clash with security personnel, Foxconn may have lost more than 30% of its November production at the Zhengzhou site, Reuters reported last month, citing a source familiar with the situation. Foxconn has not disclosed any information about the disruption's impact on its production plans or finances.
According to analysts, Foxconn assembles roughly 70% of iPhones, with the Zhengzhou plant producing the majority of its premium models, including the iPhone 14 Pro.
"The capacity is now being gradually resumed" with new staff hiring under way, said the person with direct knowledge of the matter. The person declined to the named as the information was private.
"If the recruitment goes smoothly, it could take around three to four weeks to resume full production," the person said, pointing to a period around late December to early January.
According to reports quoting the source, Foxconn and the local government are trying hard to recruit as many workers as possible , but there are still a number of uncertainties. The individual mentioned "fears" that some employees may have about working for the company after the plant was hit by protests last month, which sometimes turned violent.
"We are firing on all cylinders on the recruitment," reports quoted the souyrce as saying.
There were no comments available from Foxconn.
According to reports citing a second Foxconn source, the company hopes to restart full production "as soon as possible," but no timeframe was provided.
"The situation has stabilised," the person said, referring to the protests and the government's easing of COVID restrictions. "The local government is actively helping with the resumption."
Foxconn will report November revenue after the market closes on Monday.
Last month, the Taiwanese company predicted a slight decline in fourth-quarter revenues for its smart consumer electronics business, which includes smartphones, but significant growth for cloud and network products.
Foxconn shares finished flat, in line with the overall market, which gained 0.1%.

Christopher J. Mitchell

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