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April 2, 2012

Foxconn to build new manufacturing unit in China

Agrees to improve working conditions at the company

By CBR Staff Writer

Foxconn Technology Group has revealed plans to build a new manufacturing facility in south China’s island province of Hainan and expand operations in Brazil.

The largest maker of Apple devices is also set to raise worker salaries in China and reduce the work hours.

The move comes as the company was reportedly in the spotlight for poor working conditions at its unit in Shenzhen, following an audit by the nonprofit Fair Labor Association (FLA).

FLA had that revealed Foxconn employees work 56 hours a week on average, more than the 40 regular hours a week and 36 hours of overtime a month under Chinese law.

According to the agreement reached with Apple, Foxconn Technology Group has agreed to carry out the remediation programme into compliance with Chinese law by July next year.

Foxconn now supplies 50% of the world’s consumer electronics, with its units assembling handsets for companies such as Nokia Oyj and Huawei Technologies, besides from Apple.

The company intends to start construction on the plant in Hainan at the end of this year and signed a contract with Hainan Airlines on logistics and e-commerce projects, state-run Xinhua news agency reported.

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