Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  TAIWAN STOCK EXCHANGE  >  Hon Hai Precision Industry Co., Ltd.    2317   TW0002317005

SummaryNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

Hon Hai Buys Site in Brazil to Expand Manufacturing

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/16/2012 | 12:44pm CEST

--Hon Hai buys site near San Paulo, Brazil for expansion

--A new factory is estimated to start in 2014; reach full capacity in 2016

--The company has long-term plans in the country

(Add purchase details of the purchase and background)

 
   By Jenny W. Hsu 
 

TAIPEI--Hon Hai Precision Industry Co. (>> Hon Hai Precision Industry Co., Ltd.), an assembler of Apple (>> Apple Inc.) products, said Friday it will build a factory on land it bought near San Paulo that, when complete, will centralize its existing factories in Brazil.

It may build additional factories on the site as demand dictates, it said.

Taipei-based Hon Hai, the world's biggest contract electronics manufacturer by revenue, has four factories in Brazil now.

It has plants dotted across China, too. However, rising labor costs there have prompted the company to look elsewhere. It is considering a joint-venture in Indonesia but says details are being ironed out.

Hon Hai purchased the 1.42 million-square-foot plot in an industrial park in Itu, a city near Sao Paulo, Brazil, from Toulouse Incorporacao SPE LTDA for $12.7 million, according to an high ranking company official.

"The procurement signals our interest for a long-term development in Brazil", the official said.

In September, Hon Hai said the facility should open in 2014 and reach capacity in 2016. It will employ approximately 10,000 workers, it added.

It didn't specify what the factory will produce or who for.

Government tax breaks and proximity to growing local markets has made Brazil an attractive alternative to China.

The country has been courting multinationals. Last year, it cut federal and state taxes on the domestic production of tablet computers. This will trim costs by up to 30%. Since then, Hon Hai has built four plants there--most for tablets.

Acer Inc. (>> Acer Incorporated), a Taiwan-based personal-computer maker, has expanded to Brazil.

Write to Jenny W. Hsu at [email protected]

Stocks mentioned in the article
ChangeLast1st jan.
ACER INC --End-of-day quote.
APPLE 0.35% 164.22 Delayed Quote.-3.30%
HON HAI PRECISION INDUSTRY CO., LTD. --End-of-day quote.
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on HON HAI PRECISION INDUSTRY
04/24ASIA MARKETS : China Stocks Get A Lift After Government Talks Reforms
DJ
04/06SoftBank seeks to sell cellphone distributor Brightstar - sources
RE
04/06FIH MOBILE : SIRIN LABS Has Chosen FIH Mobile (Foxconn International Holding) to..
AQ
04/02SHARP : streamlines Malaysian operations under Hon Hai leadership
AQ
03/31HON HAI PRECISION INDUSTRY : SMART Technologies Announces New Contest to Celebra..
AQ
03/31Foxconn Profit Buoyed by iPhone -- WSJ
DJ
03/30Foxconn Profit Up As iPhone Production Glitches Fade
DJ
03/30HON HAI PRECISION INDUSTRY : Foxconn fourth-quarter net profit estimated T$71.66..
RE
03/28SoftBank Vision Fund, Saudi Arabia to create world's biggest solar power firm
RE
03/28FOXCONN INTERCONNECT TECHNOLOGY : Unit Agrees to Buy Belkin for $866 MillioAcces..
DJ
More news
News from SeekingAlpha
04/2150 Technology Top Dividend Picks By Yield And Gains For April 
04/11IDC : Smartphone assembly -13.8% in Q4 
03/27Foxconn unit buys Belkin for $866M 
01/29NAR : Sharp considering bid for Toshiba's PC unit 
01/23APPLE ROUNDUP : iPhone X sells 29M units, new MacBook rumor, Foxconn shift 
Financials ( TWD)
Sales 2018 4 771 B
EBIT 2018 169 B
Net income 2018 143 B
Finance 2018 262 B
Yield 2018 5,33%
P/E ratio 2018 9,74
P/E ratio 2019 9,33
EV / Sales 2018 0,24x
EV / Sales 2019 0,22x
Capitalization 1 393 B
Chart HON HAI PRECISION INDUSTRY
Duration : Period :
Hon Hai Precision Industry Technical Analysis Chart | 2317 | TW0002317005 | 4-Traders
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 19
Average target price 100  TWD
Spread / Average Target 25%
EPS Revisions
Managers
NameTitle
Terry Gou Chairman & Chief Executive Officer
Te Tsai Huang Chief Financial Officer
Chao-An Chou Manager-Central Information
Jui Hsia Wan Member-Supervisory Board
Fang Ming Lu Director & Deputy General Manager
Sector and Competitors