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Business / Companies

Hon Hai to develop electric cars in N. China

(Xinhua) Updated: 2014-09-04 11:00

TAIYUAN - Hon Hai Precision Industry Company Limited, the world's largest electronics maker, will invest in electric cars in the coal-rich Shanxi province in North China, company founder Terry Gou said on Wednesday.

Speaking to Shanxi businessmen in the provincial capital of Taiyuan, Gou said his company will capitalize on Shanxi's rich natural resources and help transform the province from an energy exporter into an eco-friendly economy.

"The development and manufacturing of new-energy vehicles is embracing a golden opportunity," said Gou, adding that Shanxi has a firm base for the development of electric cars.

Gou, also chairman of Hon Hai, the company responsible for assembling iPhones and iPads, did not specify on the investment plan.

At an annual shareholders' meeting on June 25, Gou announced Hon Hai was planning to make affordable electric cars priced under $15,000.

Shanxi provincial governor Li Xiaopeng said earlier the province will become an electric-powered, gas-powered and methanol-powered new-energy vehicle production base by 2020 with an expected annual output of 400,000 vehicles and a sales value of 50 billion yuan ($8.1 billion).

Hon Hai has operated two factory complexes in Shanxi' Taiyuan and Jincheng cities since 2003, with an accumulated investment of 20 billion yuan.

The Taiyuan complex is mainly responsible for producing high-end smartphones and components for mobile phones, while the Jincheng complex mainly manufactures industrial robots, automation gears, precision cutting tools and optical lenses.

Gou said Hon Hai will increase its investment in Shanxi by at least 5 billion yuan this year, creating an output value of over 60 billion yuan and bringing its total number of employees there to 100,000.

Shanxi has produced 14 billion tons of coal since 1949, accounting for a quarter of the country's total output, causing pollution and resource exhaustion problems.

Hon Hai to develop electric cars in N. China

Hon Hai to develop electric cars in N. China

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