Foxconn ends ‘closed loop’ at iPhone super factory in China

Taiwanese tech giant Foxconn has ended a months-long “closed-loop” system at the world’s largest iPhone factory in central China, citing Beijing’s loosening of zero regulations. COVID-19 nationwide.

Earlier this week, the Chinese government canceled most requirements for mass testing and lockdowns to hasten a return to normal life, significantly easing three years of restrictions that have weakened the economy. economy and make people tired.

The Foxconn facility in central Zhengzhou has been locked down for 56 days, with workers only allowed to travel between their dormitories and the factory area by shuttle bus after cases were detected in October. .

In mid-November, violent protests by new hires broke out over wages and conditions, with hundreds marching and some clashing with riot police and medical staff. .

On Thursday, the company said it would end the closed-loop system.

“Due to… China continues to lift disease control measures, the company requires employees to present negative test results within 48 hours to be able to return to work,” a notice was posted. on Thursday on the official WeChat account of Foxconn’s headquarters in Ho Chi Minh City. Zhengzhou, Henan Province.

The company added that its shuttle bus was back up and running and urged employees who did not participate in the closed loop to return to work “as soon as possible”.

Other official WeChat accounts of companies recruiting for Foxconn also announced that the “closed loop has been lifted”.

Foxconn, officially known as Hon Hai Precision Industry, is the world’s largest contract electronics manufacturer and assembles equipment for a variety of international brands.

Most of their factories are in China, the largest of which is in Zhengzhou, which is known as the “iPhone city”.

A lockdown was imposed on the city last month as part of Beijing’s COVID-free policy after a spike in infections.

Protracted factory disruptions and protests have hit Foxconn’s hiring practices hard and shaken supply chain stability, which Beijing attaches great importance to.

A letter sent by Foxconn founder, Terry Gou, warning the Chinese leadership about the damage to the supply chain due to COVID-19 has helped government advisers debate ending the policy, The Wall Street Journal reported on Thursday, citing people familiar with the matter.

Foxconn’s reported revenue last month fell 11.4% year-on-year and 29% from October.

It previously said it was revising its outlook for the past quarter. Some analysts have predicted sales could drop as much as 20%.

© 2022 AFP

quote: Foxconn closes ‘closed loop’ at iPhone super factory in China (2022, Dec 9) accessed Dec 9, 2022 from loop-iphone-megafactory-china.html

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