Hon Hai Precision Industry Co. has informed the employees of its Shenzhen plant not to return to work when the Lunar New Year holiday comes to an end on February 10th. This delay represents a major effort by Apple’s main supplier to fight the coronavirus that has paralysed much of China’s production.
Foxconn’s main iPhone manufacturing plant is located slightly further north in Zhengzhou, but the plant in Shenzhen serves as the headquarters where more than 10,000 employees work, most of whom come from outside the city.
The company has communicated its decision as follows:
Apple and Foxconn are among the first corporations to try to quantify the impact of the epidemic. Hon Hai has already lowered the 2020 outlook this week in anticipation of disruptions in Apple’s production chain as well as reduced consumer demand.
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As China’s largest private employer and a key partner for many brands around the world, Foxconn has become a benchmark for how the outbreak could affect Chinese manufacturing and the global supply of electronic products .