Foxconn Shuts Product at iPhone Facility Following Massive Worker Riot, No Deaths Reported
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Riots, what can't they do?
Build iPhone 5s, is what.
According to reports out late Sunday, Hon Hai Precision Industry (better known as Foxconn Technology Group) has stopped production at its Taiyuan facility due to about 2,000 workers rioting, leading to 40 people being hospitalized. The number of rioters is about 2.5 percent of the estimated 79,000 employed at the facility.
Foxconn issued the following statement to tech sites like TheNextWeb: "Foxconn can confirm that a personal dispute between several employees escalated into an incident involving some 2,000 workers at approximately 11 pm last night in a privately-managed dormitory near our manufacturing facility in Taiyuan in Shanxi province. The dispute was brought under control by local police at approximately 3 am this morning. According to police, some 40 individuals were taken to the hospital for medical attention and a number of individuals were arrested. The cause of this dispute is under investigation by local authorities and we are working closely with them in this process, but it appears not to have been work-related. The Taiyuan facility employs 79,000 people and manufactures automobile electronic components, consumer electronic components and precision moldings."
Foxconn also said no employees were killed in the incident.
What isn't clear is what is being built at the facility. Apple (Nasdaq: AAPL) is one of the key customers for Foxconn and a recent undercover investigation revealed that iPhones were being produced at the Taiyuan facility. Other customers Foxconn works with include Amazon.com (Nasdaq: AMZN), Nokia (NYSE: NOK), Microsoft (Nasdaq: MSFT), and Intel (Nasdaq: INTC).
Apple shares are reacting to the news Monday, with the stock indicated for a lower open.
Build iPhone 5s, is what.
According to reports out late Sunday, Hon Hai Precision Industry (better known as Foxconn Technology Group) has stopped production at its Taiyuan facility due to about 2,000 workers rioting, leading to 40 people being hospitalized. The number of rioters is about 2.5 percent of the estimated 79,000 employed at the facility.
Foxconn issued the following statement to tech sites like TheNextWeb: "Foxconn can confirm that a personal dispute between several employees escalated into an incident involving some 2,000 workers at approximately 11 pm last night in a privately-managed dormitory near our manufacturing facility in Taiyuan in Shanxi province. The dispute was brought under control by local police at approximately 3 am this morning. According to police, some 40 individuals were taken to the hospital for medical attention and a number of individuals were arrested. The cause of this dispute is under investigation by local authorities and we are working closely with them in this process, but it appears not to have been work-related. The Taiyuan facility employs 79,000 people and manufactures automobile electronic components, consumer electronic components and precision moldings."
Foxconn also said no employees were killed in the incident.
What isn't clear is what is being built at the facility. Apple (Nasdaq: AAPL) is one of the key customers for Foxconn and a recent undercover investigation revealed that iPhones were being produced at the Taiyuan facility. Other customers Foxconn works with include Amazon.com (Nasdaq: AMZN), Nokia (NYSE: NOK), Microsoft (Nasdaq: MSFT), and Intel (Nasdaq: INTC).
Apple shares are reacting to the news Monday, with the stock indicated for a lower open.
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