SOURCE / ECONOMY
Foxconn plants in Zhengzhou disrupted by floods, but no ‘direct impact’ on factory
Published: Jul 21, 2021 06:03 PM
Employees work at a Foxconn factory in the township of Longhua in Shenzhen, South China's Guangdong Province. Photo: VCG

Employees work at a Foxconn factory in the township of Longhua in Shenzhen, South China's Guangdong Province. Photo: VCG



The record rainfall in Zhengzhou, Central China's Henan Province that has caused widespread flooding in the major manufacturing hub, has disrupted certain operations of major iPhone supplier Foxconn's plants in the city as workers were blocked from going to work, several employees told the Global Times on Wednesday.

However, the company said that the rainfall has not caused "direct impact" on its facility that reportedly makes half of the iPhones worldwide. Analysts also said that major disruption to Apple's launch of new iPhones is unlikely, because the impact will likely be limited.

The heavy rain in Zhengzhou has caused some plants in Foxconn's Zhengzhou factory to halt production on Wednesday, according to several employees.

"A plant near the Zhengzhou airport is still in normal operation; however, some other plants that were hit hard by the rainfall stopped work today. It is expected that they will resume operation Thursday," an employee who identified himself as a worker from Foxconn's Zhengzhou factory told the Global Times.

Some of the employees living in the urban areas were not able to commute to work because of flooded roads. 

"Due to the heavy rain yesterday many roads were blocked and the shuttle bus to pick us didn't leave the factory until 8 am this morning. Some of us spent the whole night on the bus," another employee from Foxconn told the Global Times on Wednesday.

However, asked about the potential impact the rainfall may have on its production, Foxconn said that "there has been no direct impact on our facility in that location to date and we are closely monitoring the situation and will provide any updates as appropriate." 

"We have been watching the weather situation in Zhengzhou closely and, in close cooperation with local authorities, we have activated an emergency response plan for flood control measures in that location," the company said in a statement sent to the Global Times on Wednesday

Foxconn's Zhengzhou factory produces half of the iPhones in the world with 90 production lines, three plants and around 350,000 workers, according to media reports.

Recently, integrated Digital Product Business Group of Foxconn Zhengzhou factory, which is responsible for the production of iPhone, announced that it will increase the bonus of internal recommended partners to 7,000 yuan, which was widely seen as a signal that it was preparing for mass production of Apple's new iPhone 13 series.

The rain should only have a minor impact on Foxconn, Xiang Ligang, director general of the Beijing-based Information Consumption Alliance, told the Global Times on Wednesday.

"It may have to halt the production for a couple days but the capacity can quickly be made up. It is unlikely that the rain will affect or delay the launch of the new iPhone," he said.


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