HP Invests in Chongqing Factory. Foxconn NOT Included

Thursday, August 6, 2009 8:39
Posted in category Uncategorized

Yesterday when the news that HP and Foxconn were tying up for a 3 billion USD investment in Chongqing, I thought to myself “Whoe Did HP’s Due Diligence?”. That with the recent controversy surrounding Foxconn’s labor conditions, and the suicide of a 16 year old within the Apple unit, it seemed like awfully poor timing.

According to the China Daily article

The two companies formally signed a deal with the local government on Tuesday.

When completed, the manufacturing hub will consist of two main facilities, which together can produce 20 million laptops for exports each year. The hub is expected to generate an annual output of 200 billion yuan ($29.28 billion), about one third of the southwestern municipality’s yearly industrial output, according to the Shanghai-based China Business News.

It is an investment, that apparently was not meant to be..

HP spokesperson told Reuters that the company had announced a collaboration with the Chongqing government to create a second global manufacturing hub for notebook PCs. This followed a statement last October that HP would build a different facility in Chongqing to produce notebook and desktop PCs.

HP declined to give further details about the investment.

A Foxconn spokesman declined to comment

So, what happened? you have a report where both companies were in the presence of Chongqing government officials signing paperwork, and then …. they aren’t?

Did Foxconn’s recent labor issues, and the investigative reporting into Foxconn’s general reputation, become an issue for HP?  a firm that has been launching several new sustainability initiatives and whose own homeage has a link to their Business Ethics page

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One Response to “HP Invests in Chongqing Factory. Foxconn NOT Included”

  1. katelu says:

    August 10th, 2009 at 7:28 pm

    China has a large number of well-educated people, at the same time in the economic, political and various aspects of the exchange rate has remained stable, so we believe that China as a manufacturing base of HP further development is no problem.