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Foxconn, one of the largest manufacturers of computers and electronic components, has invested US$1 billion in constructing an industrial park in Shenyang, capital of Northeast China's Liaoning Province.

 

Covering an area of 1 square kilometer, the industrial park will be completed in five years, with its annual production estimated at US$4.3 billion.

 

Foxconn is the registered trade name of Hon Hai Precision Industry, mainly dealing in professional precision electrical connections, precision wires and units, installation of computer systems and wireless communication spare parts, units of optical communications and consumer electronics.

 

Hon Hai Group has about 20 business development projects underway in China.

 

Terry Guo, chairman of Hon Hai, said Foxconn would cooperate with local enterprises and institutional organs in research and development on nano copper and magnesium alloy spare parts of vehicles in IT and electronic industries.

 

"Shenyang is the ideal place for manufacturing industry. We expect to integrate the advantages of Foxconn and Shenyang and set up a world-famous precision industrial base," said Guo.

 

Guan Xiyou, general manager of local Shenyang Machine Tool Group, appeared optimistic about the project as well. "The coming of Foxconn will help play a positive role in improving the local machine tool industry. At the same time, Foxconn will find another industrial engine," said Guan.

 

"Foxconn will transfer from OEM (original equipment manufacturer) to R&D in Shenyang," said Guo.

 

This is the first time Foxconn is venturing into the auto spare parts arena on the mainland.

 

Foxconn started building its technological industrial park in Wuhan of Hubei Province, Central China, last month.

 

In February, Hon Hai Precision announced it would establish two parks in Shenyang and Yingkou. The one in Yingkou will be involved in manufacturing electronics including printing circuit boards.

 

(China Daily May 11, 2007)