Assembler Hon Hai resumes China factory work with enough manpower for seasonal demand

24, Mar. 2020

Photo by Wendy Wei from Pexels
Photo by Wendy Wei from Pexels

TAIPEI, NNA – Apple gear assembler Hon Hai Precision Industry Co. has added enough staffing on its Chinese production lines to meet seasonal demand and got there ahead of schedule despite lockdowns and quarantines across the country where Covid-19 erupted in December.

The Taiwanese firm that’s internationally known as Foxconn Technology Group said Sunday employees had returned to work gradually and recruitment had been smooth. That means labor at all of Hon Hai’s major China factories have met seasonal demands, it said in a statement on Sunday.

Foxconn operates more than 40 assembly plants in China to put together iPhones, iPads and consumer electronics designed by numerous non-Apple brands.

However, demand for certain electronics is expected to fall as consumers in much of the world avoid shopping trips as a precaution against catching the coronavirus. City lockdowns in some places have led to job losses in the service sector, further tempering demand. In China, the virus outbreak threatens “retail-focused” smartphone vendors such as Oppo and Vivo, global market research firm Gartner Inc. says.

The company forecasts that revenue from all business units will drop 10 to 15 percent from January through March and in 2020 overall compared to 2019 due to the “severe virus outbreak”, Hon Hai Chairman and CEO Liu Young-way told an online investors’ conference on March 3.

To contain the deadly coronavirus from spreading in the workplace, Hon Hai uses nucleic acid tests and chest X-ray tests to make sure employees are healthy, the statement said. Nearly 100,000 new employees at Hon Hai’s Shenzhen plant have been checked.

Company subsidiary FIH Mobile Ltd., which specializes in handset and wireless communication gear manufacturing, has allowed staff in its software-related units to work from home, a local Economic Daily News report said.

Hon Hai logged monthly revenue of 364.6 billion New Taiwan dollars ($12 billion) in January and NT$217.5 billion in February, reflecting 12 percent and 18.1 percent decreases from the same months of 2019. The February figure was the weakest since August 2011, according to the company.