Hon Hai aims to restart full production in China on schedule Feb. 10

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Taipei, Feb. 5 (CNA) Taiwan based manufacturing giant Hon Hai Precision Industry Co. is aiming to resume full scale production at its sprawling production bases in China Feb. 10 as scheduled, the company said Tuesday.

The move comes as the Chinese authorities are implementing measures to contain the coronavirus epidemic that originated in Wuhan, in the country's Hubei Province.

In an announcement filed with the Taiwan Stock Exchange, where Hon Hai shares are traded, the company said that local governments in China have come up with measures to battle the spread of the virus, paving the way for the Taiwanese manufacturer to restart its operations there.

Hon Hai, known as Foxconn in the global market, has plants in many major Chinese industrial cities such as Zhengzhou in Henan Province and Shenzhen in Guangdong Province. The company is one of the largest Taiwanese investors in China, employing more than 1 million workers there.

Due to the spread of the virus, the Chinese authorities have instructed factories to postpone their reopening following the Lunar New Year holiday until at least Feb. 10.

Since the coronavirus broke out at the end of December, the disease has killed 492 people worldwide, the majority of whom were from China, and has infected more than 24,500 people in 25 countries, including 24,352 in China as of late Wednesday, according to the World Health Organization.

Hon Hai's plants in Chinese provinces are scheduled to remain closed until Feb. 10 in keeping with the government guidelines.

As a major iPhone assembler, Hon Hai has been closely watched by the market since production has been delayed, meaning that the Taiwanese company's sales are expected to be affected, equity analysts said.

Apple accounts for about 40 percent of Hon Hai's total sales.

Hon Hai's statement came after the Zhengzhou local government announced that same day that city residents should reduce going out, cancel family reunions, avoid gatherings of people and wear masks.

In addition to the assembly of iPhones, Hon Hai's other production lines at its Zhengzhou compound produce tech devices such as applications for cellphone base station use, Internet communication devices and various electronic components.

According to Hon Hai, the company employs more than 190,000 workers in Zhengzhou.

A list published by Apple in March showed that Hon Hai's 35 factories worldwide were among the top 200 suppliers of the U.S. consumer electronics giant, with many of them located in China.

In a Reuters report published Monday, the current slowdown of Hon Hai's plants in China due to the coronavirus has had only a limited impact on the company, as it has been using its factories in other countries including Vietnam, India and Mexico to make up for the loss in production in China.

The report added that Hon Hai will be able to make up for the delay if its China factories resume operations and work overtime after the shutdown, although it also said that if the shutdown is extended into a second week, disruption of the company's shipments is possible.

Source: Focus Taiwan News Channel