Foxconns underrecruitment in the United States is far less ambitious than it was initially.

category:Finance
 Foxconns underrecruitment in the United States is far less ambitious than it was initially.


Now, according to the exclusive news of CNBC 9, Wisconsin Governor Tony Evers stole to the Foxconn factory construction site last month, and later claimed in an interview that Foxconns factory in the state could not reach billions even if it went into production next year. The threshold of allowance. Foxconn had planned to recruit 1,800 people by the end of 2020, but now only 1,500.

Governor Evers said he had received a clear plan from Foxconn, far less ambitious than initially described. But Foxconn said it would continue to work on a long-term recruitment plan.

June 2018, Foxconns Gold Shovel commencement ceremony

On June 27, Evers gave an exclusive interview with CNBC in his office. A week before the interview, Evers had just visited a construction site in Racine County, where Foxconns factory is located, and his field trip had not been announced.

We understand what will be built in the first phase and when it will be completed. Evers said, Actually, I saw them pouring cement the other day.

Under an agreement reached between Foxconn and former Wisconsin Governor Scott Walker, Foxconn pledged to invest $10 billion to build a plant in Mount Pleasant (WI) and gradually create 13,000 jobs for the region by 2032 in return for a $4.1 billion sky-high tax break.

Since then, there has been little substantial progress in the construction of the plant, but state and local governments have spent tens of millions of dollars on land acquisition, road and utility improvements. Reported that the company has only recently begun to lay the foundation for factories that have drastically reduced production scale, more than a year later than originally planned.

Current Governor Evers revealed that the project, which is scheduled to go into operation in May next year, will employ 1,500 people initially, far below Foxconns previously announced target of employing more than 1,800 people by the end of next year.

Nevertheless, Foxconns Wisconsin director told CNBC that the projects long-term recruitment objectives had not changed.

I spoke to our company (team) and they have reiterated their commitment to provide 13,000 jobs. Peter Buck, executive director of the project, said.

Screen shot of Wisconsin Governor Evers interviewing CNBC

According to previous contracts, Foxconns factories need to create at least 260 jobs in 2018, thereby receiving a $10 million tax cut subsidy. However, the company only recruited 156 people, did not reach the minimum, so the local government deprived the tax relief subsidy.

At present, Foxconn has not yet indicated whether it will meet the minimum recruitment requirement of 520 employees this year to qualify for a $222 million subsidy. The contract also requires Foxconn to create at least 1820 jobs by the end of 2020 in order to receive subsidies of up to $270 million.

The disconnect between Foxconns initial commitment and reality has caused intense controversy in Wisconsin. CNBC said the Foxconn incident may have played an important role in Eversdefeat of Walker in November last year. In April, Evers even shouted directly at Gou, questioning Foxconns commitment to create 13,000 jobs and wanting to renew the contract.

In an interview with CNBC, Evers said that details of the contract were being discussed. Foxconns clear plan for him makes it more like an ongoing dialogue than a renegotiation.

This clarity is important to me. Transparency, accountability and protection of taxpayers have always been top priorities. Evers said his government hired a consultant with industry expertise to oversee the project and maintained a continuous dialogue with Foxconn.

Screenshots of CNBC reports

In addition, the news that Foxconns factories here are downgraded has been confirmed again.

Foxconn has previously acknowledged that the project will start with a six-generation panel plant, rather than a previously promised 10.5-generation liquid crystal panel (LCD) plant. They blame factors such as the market and Corings failure to supply super-large glass substrates for 10.5 generation panels.

This time, Evers confirmed again, Theyre going to make small products, maybe tablets, tablets and mobile screens, not the big TV screens they started talking about.

The Observer Network understands that these two levels of production lines employ completely different production technologies. Among them, the 6th generation line products can only supply screens below 39 inches, while the 105 generation line can produce 65-75 inches.

Source of this article: Author of Observer. com: Editor-in-Charge of Wang Hui: Wang Xiaowu_NF