Foxconn’s move to Zhengzhou praised
September 30, 2010 Category Uncategorized
A month after Foxconn started up its first production line in Zhengzhou, in inland Henan province, employing 2,000 workers, the company aims to recruit 100,000 people in Henan by year’s end – and a total of 300,000 in the next few years. The successful move by Foxconn is an example of the central government’s plan to move labor-intensive factories away from polluted and crowded coastal areas to the vast interior, allowing more developed areas to move higher up the value chain with more capital-intensive industries. As an added benefit, migrant workers can also find work closer to home. Foxconn alone is expected to double Henan’s export value next year.
The authorities say Foxconn’s Zhengzhou plant will make Apple iPhones and be capable of producing 200,000 units a day next year. Its exports will be worth USD13 billion annually – more than the province’s total last year. It is expected thousands of other companies, including suppliers and logistics service providers, will follow Foxconn to Henan as labor shortages, soaring wages and land prices make the Pearl River Delta less attractive. Foxconn says about 130,000 workers will have to be sent to Shenzhen for training to be ready to work in its new plant in Zhengzhou by the end of next year. Foxconn’s recruitment drive in Henan has received a massive response even as its factories in Shenzhen have been plagued by a string of suicides. Foxconn plans to pay its Zhengzhou workers a basic salary of CNY850, which will rise to CNY1,600 to CNY1,800 if overtime pay and bonuses are included. That is still about CNY600 less than their counterparts in coastal provinces earn, but higher than at Zhengzhou factories. Foxconn also plans to invest billions in a new base in Chengdu, Sichuan province, where another 100,000 people will be hired, the South China Morning Post reports.
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