Taiwan-based technology manufacturer Hon Hai Precision Industry Co plans to shift production to third-tier Chinese mainland cities in order to reduce costs and take advantage of preferential tax policies, reported China Sourcing News.
Hon Hai is the parent company of Foxconn, the world’s largest manufacturer of electronics and computer components, mostly on contract to other companieswill. It will reduce the number of its employees in its Shenzhen Longhua plant from 260,000 to 100,000 and will transfer its focus to inland areas such as Wuhan, Hubei province and Jincheng, Shanxi province. Edmung Ding, a spokesperson for Hon Hai, said the aim was to cut 2009 operating costs by up to 20 per cent. The company currently has 13 plants on the mainland.