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Foxconn plans 2,000 retail stores in central China: report
Beijing (AFP) July 27, 2010 Taiwanese IT giant Foxconn plans to open 2,000 stores in central China, state media reported Tuesday, as the troubled firm moves operations to inland provinces where labour costs are lower. Foxconn, which has been accused of mistreating Chinese workers following a spate of suicides at its factory in the south, also has registered to build two plants in the same central province of Henan, Xinhua news agency said. Total investment in the two factories in the provincial capital Zhengzhou, which will make mobile phones and telecoms equipment, will be 740 million dollars, Xinhua said earlier, citing a government and a company official. The factories will not be bigger than the company's plants in Shenzhen, on the border with Hong Kong, where more than 400,000 workers are employed. "Foxconn has been doing well in Shenzhen and will never move out," Foxconn official Chen Hongfang was quoted as saying. The company, which counts Apple and Panasonic among its clients, has been in talks with authorities in Henan about opening 2,000 electronic and home appliance stores across the province as it seeks to diversify its business, Xinhua said, citing a local official. Foxconn is expected to finish registering some of the stores before October, the report said. The world's biggest electronics contractor also plans to invest in another two factories in the southwestern city of Chengdu and move some manufacturing to northern Tianjin, according to earlier reports. Foxconn's move away from its long-time manufacturing hub in Shenzhen comes after it hiked salaries for assembly line workers by about 70 percent after 11 employees apparently committed suicide this year, including 10 in Shenzhen. Labour rights activists have blamed the suicides on tough working conditions at Foxconn, prompting the head of the company last week to hit out at critics and threaten to review his company's investment plans in Taiwan.
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