Wistron, the Taiwanese Apple supplier responsible for operating the plant, said on Sunday that an Indian plant damaged by violence this month is a new plant with limited output and therefore limited financial impact.
Apple put Wistron’s capital on a trial basis. It said on Saturday that Taiwan will not grant new business to Taiwanese contract manufacturers until it solves the treatment of workers in the Indian factory in southern Taiwan.
The contract workers were angry about the unpaid wages and destroyed property, gears and iPhone devices on December 12, costing Wistron millions of dollars in losses and forcing it to close the factory.
Wistron stated in a statement to the Taiwan Stock Exchange that its consistent policy is not to comment on business relationships with customers.
Wistron’s share price fell about 3% in early trading, underperforming the broader market.
Wistron stated that the company has been cooperating with the local government to investigate what happened and will “cooperate with customers to improve and restore work plans.”
“Since the Narasapura plant is a new production line, its current output is limited, and it is preliminary estimated that it will not have a significant impact on the company’s finances and business.”
Wistron Corporation admitted on Saturday that some workers at the Narassapura plant in Karnataka were not properly paid or paid on time, and said it would remove the senior executive who oversees Indian operations.
Apple said it will continue to monitor Wistron’s progress in corrective actions.
© Thomson Reuters 2020
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