Foxconn to Build PC Assembly Plant in Russia

Edmund Ding, spokesperson for Foxconn Electronics, marketing name for Hon Hai Precision Industry, confirmed the company’s plan to set up a PC assembly plant in Russia. This is according to DigiTimes sourcing the Chinese-language Economic Daily News (EDN) report. The report states that this assembly plant is a joint venture between Foxconn and HP with the investment valued at US$50 million. The assembly plant will be located in St. Petersburg, Russia and manufacture PCs as well as LCD monitors. HP contracts out the manufacturing of PCs and LCD monitors to other Taiwan-based integrators such as Asustek Computer and Elitegroup Computer System (ECS). The joint venture might strain HP’s relationships with Asustek, ECS and others, according to the report.

[tags]Hon Hai, Foxconn, HP, LCD Monitor, LCD TV, Desktop PC, Asus, Elitegroup Computer System, ECS[/tags]

Opinion
I’m not sure building a joint assembly plant with Foxconn is such a good idea for HP. There are benefits for sure. Foxconn is one of the largest integrators of LCD monitors and IT equipment in general and there is no sign of the company slowing down. However, siding with one large integrator might expose HP to that company more than the company might want. Remember Foxconn and Apple? It was to Apple’s benefit that Foxconn was one of many integrators that the company used. It would have been a different story if the majority of Apple’s goods were manufactured by Chinese laborers that suffered poor working conditions. Not that I am against the country of China, but Chinese companies’ practice of providing poor conditions to their workers and completely disregarding the environmental impact of manufacturing operations will only get worse before something catastrophic happens that will jolt the system toward improvements.

Source: Economic Daily News via DigiTimes via Witsview

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