Foxconn, Apple’s biggest assembly partner, will build a $2 billion facility in Heze, China. The factory is said to produce at least one-fifth of Apple’s products over the next 5 to 10 years, the Economic Observer reports.
According to information obtained by the Chinese newspaper, Foxconn’s chairman Terry Gou will ink an agreement this Saturday with the local government in Heze, Shandong Province, to build that facility.
The new Foxconn facility will initially produce mobile phone parts and accessories but, as a result of a second row of investments, will also add further production lines, a Heze official said to the Economic Observer.
Apple’s partner has chosen to build the new plant in Heze largely because the area is very rich in human resources.
Currently, Foxconn is on track to manufacture roughly 130 million iPhones this year, a goal the company itself set for 2014. It is worth noting here that it has dedicated its Zhegzhou facility in full for the iPhone assembly, and according to last year’s data, the company has reached a maximum production output of half a million devices per day.