Business

Foxconn to Establish Amazon Production Center in China

By | May 01, 2017 06:40 PM EDT
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Shenzhen One Of The Fastest Growing Cities In The World

Workers put up scaffolding on a building owned by the contract manufacturer Foxconn International Holdings Ltd in Shenzhen, China. (Photo : Getty Images)

Foxconn is planning to build a production center in Hengyang, central China to produce devices for Amazon, DigiTimes reported citing industry sources.

Foxconn's Integrated Digital Product Business Group (iDPBG), which assembles iPhones and iPods for its largest partner, has reportedly inked a cooperation agreement with the Hengyang City government to establish a precision molding demonstration park for plastic and injection molds and an Amazon production center in the city.

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The investment project is estimated to be worth six billion yuan ($70.53 million) and will employ at least 15,000 people. Foxconn's share in the project has not been divulged.

Foxconn, which is the world's largest contract manufacturing company, will also allegedly ramp up the capacity of its plant in Hengyang this year. It plans to add 30 new production lines for audio equipment and tablets, and 15 lines for smartphones, tablet mainboards, and other components.

Foxconn has also continued to help Amazon to increase supply levels of its on-demand Echo and Echo Dot voice-activated assistant devices. Foxconn has been the only manufacturer of Echo devices and has teamed up with Amazon for business-related developments over the past decade, Fudzilla reported.

Meanwhile, Amazon is starting to push into China's logistics industry to grab a share of the country's $8 billion industry. Amazon has earlier launched the Amazon Logistics+ that allows wholesales to use Amazon to ship their products worldwide via air, land, or sea transport. This service also rattled its rivals including FedEx, UPS, DHL, and most especially local key player Alibaba.

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