Foxconn seeks to restore production at its iPhone City plant after protests

FoxconnTaiwan’s technology giant and key provider of Appleaffirmed this Monday that it wants to hire new workers to be able to “restore productive capacity to normal”, after the violent protests last month at its central plant in China.

Foxconn, also known by its official name Hon Hai Precision Industry, is the largest manufacturer of electronic components in the worldand assembles devices for various international brands.

Most of its factories are in China, including the one in Zhengzhou, an eastern city where authorities imposed a lockdown last month as part of China’s zero-COVID policy, due to a spike in infections.

This was followed by violent protests by workers over wages and working conditions at the factory, which Foxconn blamed on a “technical error” in its payment systems.

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Hundreds of workers took to the streets in Zhengzhou, known as “iPhone City” (the city of iPhone), for being one of the largest plants in the world that manufactures this smart device.

During the demonstrations there were several violent clashes with the police and medical personnel, who were wearing protective suits.

Foxconn said in a statement on Monday that it was working with local authorities to ensure safe production, “making every effort to protect” the rights and interests of its workers.

Currently the general situation of the epidemic has been brought under control, and November was the most affected period,” the company stressed.

Revenues for that month fell 11.4% year-on-year, and 29% from October.

“In addition to relocating our production capacity to different factories, we have also started recruiting new employees and are in the process of restoring production capacity to normal,” the company added.

Foxconn said it expected the outlook for the last three months of the year to be “roughly in line with market consensus”, but did not give exact figures. Some analysts predicted that sales could drop as much as 20 percent.

Coronavirus testing requirements have been relaxed in Beijing and other Chinese cities, including Zhengzhou, on Monday, as the country begins to gradually emerge from zero-Covid measures, which sparked protests.