China Business News, 11/03/11
Liu Zhida, a member of the Communist Party Committee of Huangjiang county in Guangdong's Dongguan, yesterday confirmed that Taiwanese electronics manufacturer Foxconn's (2038.HK; 2354.TW) tablet display production facility has not yet come online and its fate is unknown. Currently, the project's nearly 100,000 square meter property is host only to a warehouse.
Foxconn signed an agreement in January to lease the space in Huangjiang's Yuyuan Industrial Park to build a facility that would produce and sell small and mid-sized touch screens and tablet display components. The government of Huangjiang announced Foxconn would invest USD 100 mln in the project, with an initial sum of USD 25 mln, and that the project's total registered capital would reach USD 10 mln.
Foxconn also pledged that its other businesses as well as its supply chain partners would also enter the industrial park, with the tablet display plant scheduled to come online in March 2011. Foxconn's plan called for the plant's 2011 production value to reach USD 100 mln, later rising to USD 250 mln, and its workforce to grow to 10,000 after the entire USD 100 mln had been invested.
A Foxconn spokesperson said Foxconn could not comment on the project at this time.
Editor's Note: For more information on this topic, please see "Rumor: Foxconn Touch Screen Plant Starts Production in March," MD 2/15/11 issue.