The abrupt move by the Chinese government on Nov 2 to lock down the plant operated by Hon Hai Precision Industry until Nov 9 is expected to further disrupt a factory already grappling with an on-site coronavirus outbreak, worker exodus and enforced quarantine.
While local officials said production at the plant basically remains normal, Hon Hai said in a separate statement that it’s lowering its fourth-quarter outlook to factor in the lockdown.
The local government has ordered people and vehicles off the streets except for medical or other essential reasons, a prohibition that threatens to cut off the flow of additional workers and components needed to rev up production ahead of the holiday-season crush.
The measures may further compound the headaches Foxconn and Apple are already facing as iPhones’ sales slow in China.
See also: Cosmosteel’s CEO Ong resigns after 3HA Capital offer declared unconditional
Meanwhile, Foxconn’s plant continues to operate within a “closed loop,” or a self-contained bubble that limits contact with the outside world. That is keeping some production going.
