Hon Hai Precision Industry Co (鴻海精密) yesterday said continuing electricity rationing in China’s Sichuan Province has had “little impact” on its operations.
A Hon Hai official said by telephone that although the government in Sichuan has extended electricity rationing for five more days from Sunday, the company has so far only seen a limited impact.
The southwestern Chinese province, where many Taiwanese manufacturers, including Hon Hai, have established production sites, is one of China’s biggest hydropower producers.
Photo: Lam Yik Fei, Bloomberg
However, the province has suffered severe power shortages amid the worst heat wave and drought in six decades.
Power rationing in the industrial sector has been extended to 11 days to ensure enough electricity for domestic users in Sichuan and is to last until midnight on Thursday.
The company has several subsidiaries in Chengdu, the capital of Sichuan, that manufacture a wide range of products, such as devices, projectors, networking and communications gadgets, automation equipment, digital control systems, servers, items used in base stations and tablet computers.
Analysts said Hon Hai, known as Foxconn Technology Group (富士康科技集團) globally, uses its Chengdu production sites as its major sources for Apple Watch, iPad and MacBook assembly.
Last week, Hon Hai chairman Young Liu (劉揚偉) said the company would closely watch its inventories and plan overtime work schedules to reduce the impact of the power rationing.
Hon Hai is one of the largest foreign investors in China, operating a broad production base around the mainland with more than 1 million workers for international brands such as Apple, Dell Technologies Inc and Sony Group Co.
In related news, Taiwan Cement Corp (台灣水泥) and Asia Cement Corp (亞洲水泥), two of the leading cement suppliers in Taiwan that also have production sites in Sichuan, said the extended power rationing in the province has also had a limited impact on their operations.
The two cement producers said they have complied with the power rationing in Sichuan by scheduling maintenance work for their factories.
The two companies said they would continue to closely monitor the development of the power situation in Sichuan to come up with timely responses.
Asia Cement’s annual report showed that its subsidiary in Sichuan produced 6 million tonnes of cement last year.
Taiwan Cement’s annual report says it has five subsidiaries in the province, but did not disclose their production outut.
In China, Asia Cement’s annual production hit 27.46 million tonnes last year, while Taiwan Cement produced 66.54 million tonnes.
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