Apple Prepping New Production Line in China, Foxconn Partners to Invest $210M

By Akansha Srivastava | May 22, 2012 07:45 AM EDT

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Foxconn, the manufacturer of Apple's iPhones, iPads and Macs, plans to invest $210 million in a new Apple production line in China's east Jiangsu province in October, according to a report from China Daily.

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The 40,000 square meter plant will employ as many as 35,800 workers and will be located in Huai'an City. The office of Taiwan Affairs of Huai'an City confirmed that the plant will house a production line for Apple devices and is expected to have an output between $949 million to $1.1 billion a year.

It is not clear which Apple products are expected to be built in the plant, but construction will begin in October this year, perhaps ruling out the possibility of the factory manufacturing the sixth-generation iPhone that is rumored to go into production in June.

Manufacturing for the new iPhone will most likely take place in Foxconn's main Shenzhen plant, where upwards of 200,000 workers currently work.

Further, it is also logical to assume that the plant's construction will not finish before the end of 2012, hence, Apple's new Ivy Bridge MacBook Pro and iMac which are expected to launch this year, will also not be manufactured in this new plant.  Meanwhile, Apple has revealed no information yet, on what exactly the Cupertino-based giant will use the production line to build. The media is still waiting for a reponse from the company's end and updates would be provided as soon as some more details on the same appear.

According to reports which arrived recently, Foxconn came under scrutiny regarding workers' rights issues and was reportedly working with Apple to monitor issues and improve standards. In addition, it also opened a new plant in Brazil where the company produces iPads and iPhones that are sold in that country, and also adopted a strategy of decentralizing its Chinese production facilities, building some of its new plants in interior regions, closer to the homes of many young workers seeking jobs with the company.

Further, with the increasing sales of Apple products, the manufacturer also expanded its facilities to accommodate greater production lines to manufacture more products. Late last year, the company announced plans to double the size of its iPhone plant in Zhengzhou at a cost of $1.1 billion, making it the largest smartphone producing facility in the world.

So what do you think could be the new production line for which Foxconn and Apple have signed the new partnership? Let us know your thoughts in comments.



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