Foxconn, the supplier of leading tech company Apple, anticipates that its plant based in Zhengzhou, China, will resume full production. The plant’s operations were affected by the COVID pandemic and strict restrictions.

Foxconn to resume full production

The company expects to resume full production in late December or early January. The resumption of operations comes amid employee unrest last month, which disrupted the company’s operations. Foxconn is the largest iPhone factory globally.

The company also said that the situation triggered by the pandemic was not under control, adding that November was the worst month. It has added that it has started hiring new employees again, and it was restoring the production capacity to ensure it reaches normal levels.

The manufacturing plant has been dealing with strict COVID restrictions that have created unrest among employees because of the working conditions in the factory. After the unrest that happened in November, the company’s production was further affected, but the company is yet to reveal the full extent of the impact during the disruption.

Foxconn is estimated to assemble around 70% of all iPhones. The Zhengzhou-based plant produces most premium models, such as the iPhone14 Pro. One of the sources close to the company said that the company’s production capacity was gradually resuming, adding that if the recruitment process was smooth, full production would be achieved in three to four weeks.

Foxconn and the local government are handling the recruitment drive. However, there are several uncertainties, such as the willingness of workers to work at the company after the company was affected by protests that turned violent at some point.

Company’s revenues affected by COVID restrictions

The company also said that its monthly revenues for November were an 11.4% year-on-year decline. The decline resulted from disruptions in production caused by COVID restrictions at the factory.

The company further added that the November revenues for its smart consumer electronics business had declined year on year. The decline was partly attributed to some of the shipments being affected by the disruptions in production in Zhengzhou. However, the company failed to provide in-depth details on how its operations were affected.

Last month, the company expected a year-on-year drop in its Q4 revenues in its smart consumer electronics business. However, it anticipated growth in its cloud and network products.

On Monday, the company reported that the overall revenues for the fourth quarter would be in line with the market consensus. However, it did not elaborate further on the numbers that it expected. Moreover, it did not provide details on whether its different business sectors would be revamped to achieve a fresh look.

Last month, the company said that its revenues for the last three months of 2022 would be flat, adding that its financial performance for 2023 would also remain gloomy. The company’s shares have gained 0.37% today, in line with a slight recovery in the broader market.