Foxconn, the $130-billion Taiwanese electronics manufacturer, will suspend all operations at its Sriperumbudur plant from December 24, leaving nearly 1,700 employees jobless.

The suspension is due to a change in the facility’s customer base and in manufacturing requirements of customers in India, according to a spokesperson for FIH Mobile Ltd, formerly Foxconn International Holdings.

Two months ago, Nokia suspended its operations at Sriperumbudur. This was a major blow to Tamil Nadu’s image of a being a telecom manufacturing hub. Foxconn’s action will dent the State’s reputation further, said industry sources.

FIH, the world’s largest maker of mobile phones, for big brands such as Nokia, had invested over $100 million in its Sriperumbudur plant.

The facility was commissioned in 2006 to manufacture printed circuit boards and telecom components. “We can confirm that our India operation, FIH India Private Ltd, will be suspending all operations at our manufacturing facility in Chennai effective December 24,” said a spokesperson for FIH Mobile Ltd.

Taking action

“We are working with the government and the relevant labour unions to ensure that this action is carried out in a manner that follows all relevant laws and regulations and is fair to the approximately 1,700 employees who will be affected by this move,” the company said. The suspension of the plant’s activity is also related to a restructuring of its India operations, which, the company says, is designed to ensure that it is able to meet both current and future needs of customers.

“We will continue to consider investments in manufacturing operations in India when they make sense commercially and when they are consistent with the needs of our customers. Details regarding any new investments will only be announced once decisions have been made and all necessary approvals received,” it said.

The Foxconn facility saw some labour unrest in 2010.

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