http://deltabridges.com/news/shenzhen-news/shenzhen-foxconn-relocates-production-cut-costs
Shenzhen- Foxconn Relocates Production to Cut Costs
Posted Fri, 2010-07-02 14:14 by John Wieja
Taiwan’s high-tech giant Foxconn plans to move its major production line from Shenzhen to Langfang in North China’s Hebei province in an attempt to reduce labor costs, chinanews.com.cn reported Thursday.
Vincent Tong, spokesman for the corporation, says the relocation is estimated to be completed by the end of this year. After that, only a small part of its business will remain in Shenzhen.
He adds that the fees for the relocation could hinder performance in the first half, which has already witnessed a larger loss compared with the same period of the previous year due to price reduction, adjustment of product lines and spending on depreciation.
It is reported that Foxconn suffered a loss of $18.7 million in the first half of 2009.
The company started its relocation project in the mainland in 2007. Right now part of its product lines have been removed to northern areas of China and India.
-Asiaone, Yan Weijue