China locks down area around Foxconn’s iPhone plant over Covid-19
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Workers on their lunch break leaving the Foxconn plant in Zhengzhou, Henan province, in 2015.
PHOTO: NYTIMES
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SHANGHAI – China has ordered a seven-day lockdown of the area around Foxconn Technology Group’s main plant in Zhengzhou, a move that will severely curtail shipments in and out of the world’s largest iPhone factory.
The lockdown, which affects some 600,000 people, will last until Nov 9, the local government said in a statement posted on its WeChat account.
All businesses would be required to work from home, with only “key enterprises” allowed to continue operating, the authorities said.
Only medical vehicles and those delivering essentials are allowed on the streets.
The abrupt action reflects Beijing’s zero-Covid-19 approach
The Taiwanese firm, whose main listed arm is Hon Hai Precision Industry, is grappling with a Covid-19 flare-up that forced some of its 200,000 staff into quarantine and pushed others to flee – some on foot.
The company has scrambled to mitigate the potential disruption. It said it would quadruple bonuses for employees willing to remain at the factory during the outbreak.
Market research firm TrendForce said it had cut its iPhone shipments forecast for the fourth quarter by two million to three million units, from 80 million previously, due to the troubles at the Zhengzhou plant. BLOOMBERG, REUTERS
