Foxconn Extends India iPhone Plant Closure For 3 Days Following A Week-Long Production Halt: Report

Key Apple Inc AAPL supplier Foxconn’s manufacturing plant in India will remain shutdown for three more days, Reuters reported on Monday, citing a government official.

What Happened: Hon Hai Precision Industry Co Ltd HNHPF, popularly known as Foxconn, was expected to reopen operations at the facility on Monday after work was halted on Dec. 18 due to a workers' protest.

The manufacturing plant that assembles iPhones and is located near the southern metropolitan city of Chennai is now expected to resume production on Dec. 30.

A food poisoning incident led to protests and the subsequent detention of 70 women and 22 men earlier this month.

District officials said 256 workers at the factory were treated as outpatients while 159 were hospitalized, as per an AppleInsider report last week.

Following the incident, protesting workers and their relatives blocked a highway. While the 70 women detained after the protest were reportedly released, the 22 men held by the police were formally arrested.

See Also: Apple Puts Supplier Wistron Corp On Probation After Labor Law Violations In India

Why It Matters: The development comes a year after another iPhone plant in South India, run by Taiwan’s Wistron Corporation, was rocked by protests last year. 

The tech giant had then said that it would not continue working with the said factory unless it addresses issues raised by a government inspection. The factory restarted operations in February. 

Last month, Foxconn said it anticipates the supply chain crisis affecting electronics manufacturing to last into 2022. The company’s profit for the September quarter rose 20% year-over-year to $1.33 billion, beating a consensus estimate of $1.14 billion.

Price Action: Apple shares closed 0.36% higher at $176.3 a share on Thursday.

Related Link: Apple Hires Away Meta's Key Augmented Reality Employee, Ramping Up Efforts For AR Headset Release: Report

Photo: Courtesy of Pixabay

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!