Foxconn to Invest RMB 100 Bln in Shanxi
China Business News, 8/22/12
At "The World Assembly of Jin Merchants" in Shanxi province on August 20, Foxconn (2038.HK; 2354.TW) CEO Terry Gou said that the Taiwanese electronics manufacturer will invest RMB 100 bln in Shanxi province over the next five years to build eight major production bases in Jincheng, Shanxi for projects including precision components, optical communication components, and robotics. Foxconn and the Jincheng municipal government signed a partnership agreement for the base at the sixth annual Expo Central China in September 2011. The Jincheng government will invest RMB 1.7 bln in the construction of plant facilities, which Foxconn will subsequently purchase, in order to speed plans for the development.
In addition to tax breaks and waivers for Foxconn, the Jincheng municipal government has also begun offering an RMB 300 referral fee for anyone referring new employees to the Foxconn plants. As staffing numbers have increased, the referral fee has reportedly increased to RMB 500 per new employee. Foxconn plans to employ 210,000 people in Jincheng's Science and Technology Industrial Park over the next three to five years. Once the park is fully operational, Foxconn alone will boost the Jincheng GDP by RMB 60 bln. In 2011, Jincheng's GDP was RMB 89.5 bln.
Editor's Note: For more background on this topic, please see "Foxconn to Manufacture 1 Mln Robots" MD 1/13/12 issue and "Foxconn to Restructure Factories, Move Workers" MD 12/28/08 issue.
Keywords: Terry Gou hardware tax Foxconn Expo Central China contract manufacturer HR investment technology park production facility
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