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Foxconn’s New China Plant Aims for $8 Billion Output

Photographer: Ashley Pon/Bloomberg

Terry Gou, chairman of Hon Hai Precision Industry Co., gestures as he speaks during the company's annual general meeting in the Tucheng district of New Taipei, Taiwan. Close

Terry Gou, chairman of Hon Hai Precision Industry Co., gestures as he speaks during the... Read More

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Photographer: Ashley Pon/Bloomberg

Terry Gou, chairman of Hon Hai Precision Industry Co., gestures as he speaks during the company's annual general meeting in the Tucheng district of New Taipei, Taiwan.

Foxconn Technology Group (2038) is aiming for 50 billion yuan ($8 billion) worth of annual production from a new China factory by 2018 as clients including Apple Inc. seek suppliers with more environmentally-friendly manufacturing.

“In the past, people thought being green would increase costs or lower efficiency. That is not the case,” Foxconn Chairman Terry Gou said at a press conference in Guiyang, in southern China’s Guizhou province. “This industrial park represents a new model for growth; green and responsible.”

Apple and Hewlett-Packard Co. are among Taipei-based Foxconn’s clients seeking to make their supply chains more environmentally responsible. The new plant will be more energy efficient and will use less chemicals and more recyclable materials, Gou said yesterday without giving details.

The plant is also part of Foxconn’s effort to expand into businesses such as automotive electronics, mobile phone services and cloud computing to boost growth amid slowing sales. Carbon nano tubes and recyclable materials are among the products Foxconn will develop at the site in addition to consumer electronics such as mobile phones and televisions, Gou said.

Foxconn expects 35 billion yuan in annual output at the facility by 2016, he said.

Photographer: Tomohiro Ohsumi/Bloomberg

Foxconn Technology Group Chairman Terry Gou. Close

Foxconn Technology Group Chairman Terry Gou.

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Photographer: Tomohiro Ohsumi/Bloomberg

Foxconn Technology Group Chairman Terry Gou.

Apple is among electronics companies auditing the environmental impact of its devices, including the manufacturing process. Chris Gaither, a Cupertino, California-based spokesman for Apple declined to comment on Foxconn’s Guiyang plans.

Carbon Footprint

Carbon emissions from our manufacturing partners remain the largest portion of our carbon footprint, an area we’re committed to addressing,” Apple said in an update to its environmental responsibility report posted online this month.

Production processes for the iPhone 5s, introduced in September, account for 83 percent of that product’s greenhouse gas emissions, followed by customer use which accounts for 12 percent, according to an Apple report. The device produces 36 percent more greenhouse gas emissions than the iPhone 4s, which had 64 percent coming from production, Apple (AAPL) said.

Hewlett-Packard said in September the company plans to cut its greenhouse gas emissions among first-tier manufacturers by 20 percent in the 10 years through 2020.

To contact Bloomberg News staff for this story: Tim Culpan in Taipei at tculpan1@bloomberg.net; Edmond Lococo in Beijing at elococo@bloomberg.net

To contact the editors responsible for this story: Michael Tighe at mtighe4@bloomberg.net Aaron Clark, Suresh Seshadri

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