Taiwan's Hon Hai delays opening plant in Indonesia

Dec 06, 2012

Taiwanese technology giant Hon Hai Precision has postponed construction of a mobile phone factory in Indonesia which was to have begun by the end of this year, a report said Thursday.

Hon Hai's investment has been put off as the company and have yet to "reach a consensus" on the details of the project, said Taiwan's Central News Agency, citing a company spokesman.

The report quoted sources as saying that unspecified Indonesian regulations on imported mobile phones and insufficient measures against counterfeited products have also caused concerns for the company.

Indonesia's trade minister Gita Wirjawan is planning to visit Taiwan later this month to discuss details of the investment with Hon Hai chairman Terry Gou, the report added.

Hon Hai, also known internationally as Foxconn, is the world's largest maker of and assembles products for Apple, Sony and Nokia. It employs more than one million workers in China.

The company has come under the spotlight after and labour unrest at its Chinese plants in recent years, which activists have blamed on tough , prompting calls for better treatment of staff.

In recent years, Hon Hai has also been stepping up investments in other countries such as Brazil as alternatives for manufacturing operations to China.

Hon Hai officials were not immediately available for comment.

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