Foxconn, the world's largest electronics contractor, will invest US$2 billion in building a new assembly plant in the southwest China city of Chengdu, the local government announced Friday.

The company will hold a press conference at 2 p.m. Friday in Chengdu, capital of Sichuan Province, to give more details about the new plant, said an official with the Chengdu municipal government.

Foxconn, whose parent company is the Taiwan-based Hon Hai Group, makes computers, game consoles and mobile phones for companies, including Apple, Hewlett-Packard, Sony and Nokia.

The company had been plagued by a string of worker suicides at a factory in south China's boom town of Shenzhen earlier this year, prompting executives to improve conditions for workers, such as raising salaries and organizing activities to boost morale and cherish life.

Earlier in August, Foxconn opened a new assembly plant in Zhengzhou, capital of central China's Henan Province, as the IT giant began moving its factory production to inland China after the series of suicides.

The 100-million-U.S.-dollar factory, owned by Futaihua Precision Electronics (Zhengzhou) Co. Ltd., a Foxconn subsidiary, mainly produces Apple's iPhone.

In addition to Henan, Foxconn has opened plants in the inland regions of Hebei, Shanxi and Hubei.