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Foxconn Electronics will team up with a number of China-based companies to build a production center in Hengyang, central China to produce of an array of devices for Amazon, according to industry sources.
Foxconn’s iDPBG (Integrated Digital Product Business Group) has signed a cooperation agreement with the Hengyang City Government to build a precision molding demonstration park as well as Amazon production center in the city.
The investment project will require a capital input of CNY6 billion (US$870.53 million), according to media reports in China. The report did not indicate as how much Foxconn will contribute to the project.
However, the report indicated that Foxconn will ramp up the capacity of its plant in Hengyang in 2017, including the adding of 30 new production lines for production of audio equipment and tablets, and another 15 lines for smartphones and tablet mainboards and other components.
Foxconn’s expansion project will create jobs for 15,000 persons, the report added.
The added production lines for audio products indicates that demand for Amazon Echo smart devices is likely to increase significantly in 2017, pushing Foxconn to ramp up its capacity, said the sources. Foxconn has been cooperating with Amazon since 2007 and is also the sole maker for the Amazon Echo.
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