HONG KONG, Nov 22 (Reuters) - Foxconn International (2038.HK), which makes cellphones for the likes of Motorola MOT.N and Nokia NOK1V.HE, plans to spend more than $500 million building a southern Chinese plant due to start up in the third quarter of 2008.
Foxconn, a division of top Taiwan electronics parts maker Hon Hai (2317.TW) with existing plans to spend billions of dollars ramping up capacity in coming years, will site its newest plant in the southern city of Huizhou, taking pressure off a Shenzhen plant now operating at full capacity.
The plant is expected to eventually become its main southern Chinese manufacturing operation.
Foxconn International is investing in manufacturing from Vietnam to India. Diversifying away from its main production bases in Beijing and Shenzhen, the Hong Kong-listed firm is also erecting factories in China’s Taiyuan and Langfang, hoping to win over more business from Samsung Electronics (005930.KS), LG Electronics (066570.KS) and others.
Shares in Foxconn fell 1.5 percent on Thursday in line with a weak broader market, but have bucked the trend to gain 3 percent over the past two sessions.
“The size of this newest plant would be similar to the one in Shenzhen. It will be a significant revenue contributor in future,” a Foxconn spokesman said.
He said the firm could not say how much capacity was being built because of a variety of simultaneous construction projects going on over the next few years.
The Hong Kong-listed firm hopes to hire more than 10,000 workers next year for that factory, and begin shipments from the second half of the year.
Foxconn’s investment in Vietnam would take place alongside Hon Hai. Both firms hope to complete construction in one to two years.
(Reporting by Vinicy Chan; Editing by Anne Marie Roantree)
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