Shenzhen is in strict blockade because of Covid-19, Foxconn still partially reopens its production plant thanks to a successful Vietnamese process
Earlier this week, Foxconn was forced to suspend operations in Shenzhen after the number of Covid-19 cases increased, causing the whole city to be locked down. However, on March 16, Foxconn said it could resume production activities within the factory premises, which have both worker housing and production facilities.
The world’s largest iPhone maker says it created a bubble to ensure safe production. Everything will comply with the policy issued by the Shenzhen Government.
“By applying a closed management process in the factory campus in Shenzhen and ensuring the necessary medical measures for workers in the bubble, some production activities can be restored.” , a Foxconn spokesman said.
The company also said it will work closely with the authorities in monitoring these activities.
Foxconn’s main manufacturing facilities in Shenzhen are located in Longhua and Guanlan Towns. However, the company did not specify what kind of products it will continue to manufacture.
The closure earlier this week, not long after Apple announced a series of new products, including low-cost iPhone models that are expected to sell better in Asia, made many Apple fans worried. This reopening may somewhat alleviate those worries.
Foxconn makes some iPhones, iPads, and Macs in Shenzhen. However, nearly 50% of iPhones are manufactured at a factory in Ha Nam province. Apple could ramp up production in Henan to make up for the shortfalls left by the factories in Shenzhen.
Apple analysts also said that manufacturer Foxconn may move operations to other regions in the short term to make up the shortfall. However, this solution only works in case production activities are at this level and only interrupted for a short time.
“The prolonged downtime could have ripple effects with other parts of the supply chain, causing production shortages for Apple products,” the analysts said.
What Foxconn is trying to do seems similar to maintaining 3 production in place in Vietnam when the Covid-19 pandemic broke out a year ago in many cities and industrial centers. In some localities, maintaining production and living in the factory premises has helped many production lines not be stalled when the pandemic broke out.
However, widespread vaccination has helped Vietnam take a softer approach to the Covid-19 pandemic.
Back to China, the world’s most populous economy is still pursuing strict anti-epidemic measures even though billions of vaccines have been injected. Just a few dozen cases also caused China to issue a blockade of an entire city of many millions of people and force people to get tested.
However, China’s strict pursuit of Covid-19 prevention policy has made the whole world worry about the risk of breaking the global supply chain, which is already very bad due to the pandemic, geopolitical conflicts and many other factors. Other problems.
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at Blogtuan.info – Source: cafebiz.vn – Read the original article here
