WISTRON iPhone Plant Violence: What has Apple supplier said on DAMAGE COST vs estimated? See Companys clarification to Stock Exchange!
The violence at an iPhone manufacturing facility in India caused up to T$200 million (USD 7.12 million) in damage though production facilities were not as badly hit as reported, Reuters reported quoting Apple Inc's Taiwan-based operator Wistron Corp on Tuesday.
In a statement to the Taiwan Stock Exchange on Tuesday, the company said major production facilities and warehouses had not suffered as serious damage as reported by local media, and that it was initially estimating losses at T$100-200 million. Source PTI
What has happened till now? Thousands of contract workers gathered on the grounds of the Wistron site on the outskirts of India`s tech hub of Bengaluru on Saturday demanding unpaid wages and better working hours. Source: Reuters
As police arrived, the crowd turned violent and video from the scene showed people armed with rods and sticks smashing equipment and vandalising cars. In a police report seen by Reuters, Wistron estimated damages worth USD 60 million. Source: Reuters
Wistron’s Statement The company is doing its utmost to get the plant back up and running, it said. "The company has cooperated with the relevant authorities and the police investigation and continues to negotiate with the insurance company," Wistron added, without elaborating. Source: Reuters
Impact on Wistron Stocks Wistron shares fell around 2.5 per cent in early Asia trade, underperforming Taiwan`s broader stock market. Source: Reuters
Apple Inc’s stands on the issue Apple Inc said on Monday it was investigating whether Wistron had flouted supplier guidelines. Apple said it was sending staff and auditors to the site and was cooperating with police in their investigation. Wistron is one of Apple`s top global suppliers. Source: Reuters
It has been making iPhones in India for nearly four years and its operation has been seen as a success story for Prime Minister Narendra Modi`s government that is looking to boost manufacturing. Source: Wistron Corp Website