Foxconn Technology Group, one of US tech giant Apple’s biggest suppliers, will build a high-tech manufacturing base in south China’s island province of Hainan, the Taiwanese company said on Sunday.
“I hope construction on the plant will begin in Haikou this year,” Terry Gou, the group’s chairman, said at the 2012 Boao Forum for Asia (BFA), which is currently being held in southern Hainan.
The group which is the contract manufacturer of Apple, Sony, Dell and several other multinational electronic brands has a huge network of firms in China in which lakhs of Chinese labour are employed.
Gou said he was not sure about the timetable, as the local government will determine when construction can begin.
The company initiated a host of labour incentive measures following a spate of worker suicides over poor conditions.
According to the agreement reached with Apple last week, Foxconn Group, will hire tens of thousands of new workers, eliminate illegal overtime, improve safety protocols and upgrade housing and other amenities.
The move is in response to the independent Fair Labor Association’s findings of violations of labour law by Foxconn, such as letting long work hours and unpaid overtime. Foxconn now supplies 50% of the world’s consumer electronics.
Gou broke the news while signing a strategic contract with Hainan Airlines, the country’s fourth-largest air carrier, at the forum, state-run Xinhua news agency reported.
The companies will work together on logistics and e-commerce projects, allowing Foxconn to speed up its shipping and ensure that its products are delivered to global clients in a timely manner, Gou said.