From the C-Suite: Insights and Advice from Corporate Leaders
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January 4, 2023: Foxconn’s Covid-hit iPhone factory in China’s Zhengzhou city is almost back to total production, with its December shipments which reach regarding 90% of initial ideas, two people with direct knowledge of the matter said.
Production at the significant manufacturing facility of Apple’s iPhones was heavily affected late in the previous year after a Covid-19 outbreak and curbs which took control of the virus, promoting thousands of workers to leave. More than payment issues, a bout of worker unrest also hit it.
Foxconn has been offering bonuses to attract recent workers and convince those that are to stay on. A source told Reuters last month that it was aiming for the plant to resume total production around late December to early January.
“Production has almost fully resumed,” articulated one of the people on Tuesday, who refused to be identified as the details were private.
The second person said production was back to normal but that company officials remained cautious more than the outlook because of a spike in Covid-19 cases all over China.
“We expect a peak for cases after the Lunar New Year holiday,” the person said, which refers to the week-long break that begins on January 21. “We don’t know if that will yield any issues.”
On Saturday, the administration-owned broadcaster of Henan province, where the plant is present, quoted an executive from the factory who stated the capacity to recover.
The plant can accommodate 300,000 workers.
The Zhengzhou plant’s troubles highlighted companies’ and workers’ difficulties in adhering to China’s zero-Covid-19 policy.
In early December, following Foxconn’s woes and a string of rallies over the policy, the central government abruptly dropped the approach to adopt a strategy of living with the virus. The move was welcomed by widespread relief but precipitated a wave of diseases across the nation.
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