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Manufacturing

Hon Hai to raise prices due to higher labor costs

CL Huang, vice president of Hon Hai Precision Industry (HHPD.LSE, 2317.TW), said that the firm plans to raise prices for consumers in part to cover the increased cost of labor at its China manufacturing facilities, AP reported. Hon Hai is the parent company of Foxconn Technology Group (2038.HK, 2317.TW), the embattled technology manufacturer that more than doubled worker pay at its Shenzhen production facility after 10 employee suicides brought the company international criticism for the working conditions at its factories. Huang said that the Foxconn Shenzhen facility will produce higher value-added components, while lower-value goods production would move to facilities further inland.

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