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As is known, many enterprises in China began to resume work immediately after Chinese New year due to the outbreak of coronavirus. More specifically, they were required to stay closed for one more week, until February 10.
the Taiwanese company Foxconn plans to gradually begin to resume work in the factories in China next week, but to restore production to full volume, it will need one to two weeks. About this Reuters said a source directly familiar with the situation.
the Company Foxconn, which produces smartphones for global manufacturers, including Apple, have already filed requests for the reopening of factories in the Chinese state, but even if these requests are approved, complete the renewal until the end of February will not be possible due to various travel restrictions. Foxconn is critical, because its production is largely dependent on migrant workers from poorer regions of the country. In accordance with the internal documents available to Reuters, the company expects maximum use of local employees, providing time off for those who cannot return to work due to restrictions on movement around the country.
the delay in the resumption of the work may affect the global supply chain and affect the shipment of finished products to customers Foxconn, including Apple.
According to the informant, the plant shutdown will reduce the profit of Foxconn in 2020, but by how much is still unknown.
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