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Apple supplier Foxlink says working to resume production after India fire

Published 02/28/2023, 08:07 PM
Updated 03/01/2023, 12:40 AM
© Reuters. People stand outside Apple supplier Foxlink's assembly facility, after a fire broke out at the facility on Monday, in the southern state of Andhra Pradesh, India, February 28, 2023. REUTERS/Praveen Paramasivam
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TAIPEI (Reuters) -Taiwanese Apple Inc (NASDAQ:AAPL) supplier Foxlink said on Wednesday it is working hard to resume production following a fire at a plant in southern India that halted operations at the maker of iPhone charging cables, sending its stock price down.

The factory is located in the Chittoor district of India's Andhra Pradesh state and is unlikely to resume full operations for two months, raising supply chain concerns for the U.S. tech giant, Reuters reported this week.

Foxlink was engulfed in a massive fire on Monday that led part of the building to collapse, but there were no casualties.

Foxlink, in a statement to the Taiwan stock exchange, said it is investigating the cause of the fire and "working hard to resume production".

In an earlier statement late on Tuesday, the company said that the site had been blocked off by the fire department and that four production lines were known to be damaged.

As the plant, equipment and inventory are covered by insurance, the fire has not yet had a significant impact on the company's finances and business, it added.

The company will coordinate with customers and suppliers to "discuss solutions for the production capacity affected before resuming work".

It did not elaborate.

A government official told Reuters that much of the fire safety equipment at the facility was not functional.

© Reuters. People stand outside Apple supplier Foxlink's assembly facility, after a fire broke out at the facility on Monday, in the southern state of Andhra Pradesh, India, February 28, 2023. REUTERS/Praveen Paramasivam

The company's stock closed down 2.3% on Wednesday, compared to a 0.6% rise for the broader market.

The stock did not trade on Monday and Tuesday due to a holiday in Taiwan.

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