Foxconn to Help China's Jincheng With Industrial Development

Taipei, Oct. 4, 2011 (CENS)--Foxconn Technology Group, a large-sized electronic manufacturer affiliated with the world's largest EMS (electronic manufacturing service) provider, Hon Hai Group, has signed an agreement with local officials in Jincheng, Shanxi Province, western China, to help the city with industrial development.

In fact, Foxconn's cooperation with Jincheng city government on industrial upgrades has been built in the form of the Foxconn Jincheng Technology Industrial Park established in 2005. Following years of development, the industrial park has evolved into the world's largest manufacturing base of optical communication connectors and optical lens modules now, with production value exceeding RMB3 billion in 2010.

In line with the State Council's 12th Five-Year Development Plan, the Jincheng city government indicated that it will expand its cooperation with Foxconn in the coming years, in an effort to speed up local economic development and industry upgrades. Local officials have also promised to provide Foxconn with necessary supports, including rental and tax incentives, to ensure smooth implementation of the new grand investment project.

Based on the newest investment agreement, the two parties will jointly pour RMB100 billion into setting up a high-tech industrial park in the city, which is expected to generate annual production value of over RMB150 billion in the future when operational. With Foxconn's assistance, Jincheng is likely to become a globally known precision manufacturing base with the world's largest output of smart devices, precision dies, jigs and cutters, optical lens modules and communication components, and precision parts of magnesium-aluminum alloy in the future.

In addition to the grand investment project, Hon Hai Group's chairman Terry Guo is also reported to invest an additional RMB90 billion to set up a solar power station in Shanxi, showing his intention to step up business deployments in the province.