Foxconn, the behemoth hi-tech manufacturing plant that has been hit by a number of worker suicides this year, is shifting its base of operations from Shenzhen to northern China to follow the cheap labor market. From MarketWatch:
The new facilities will be located in Hebei province and are expected to be completed by year’s end, according to a report by Dow Jones Newswires on Wednesday which cited comments by company spokesman Vincent Tong.
Expenses associated with the move contributed to higher depreciation costs in the first half results, Tong was cited as saying.
Earlier in the day Foxconn issued a profit warning for the six months ending June 30, saying it expects its losses for the period to be bigger than a year earlier because of weak product pricing and higher depreciation costs.
Read more about Foxconn via CDT.