An explosion occurred at the one plant of Foxconn Technology Group, that manufactures iPhone, iPod, iPad, and Dell Computers on the Friday night.
At least two people were killed and 16 wounded, according to the New Zealand Herald. The explosion occurred in a building where the production of Apple IPad 2 was carrying out.
Incident video shows how black smoke is waving over one of the buildings, the workers leave the area in panic. The local fire service was able to establish control over the situation quickly, said Edmund Ding, a company’s representative.The incident occurred at about 7:00 pm local time at the auxiliary facility of Foxconn in Chengdu, capital of Sichuan province in southwestern China. The cause of the explosion is currently settled.
Herald reports that the anonymous staff of Foxconn told the newspaper China’s Economic Observer, that themost likely reason was the explosive dust. This could occur at the conclusion of a powdery explosive substance in a closed space and its accumulation.
Foxconn stopped production before the end of the investigation, according to Ding, who would not disclose which products are manufactured at the plant. However, Economic Observer reported yesterday that the company collects IPad 2.
How will this affect Apple
RBC Capital analyst Mike Abramsky believes that the explosion will affect Apple so if the plant produced the majority of Chengdu iPad`s, then Apple this quarter may have serious problems with the iPad 2. However, if another plant (in Shenzhen) will make more plates, the impact will be minimal.
Friday’s fire – it is one of the latest developments in the chain of difficulties of Foxconn. Previously, the plant has been repeatedly criticized by experts in the field of human rights protection, since the factories were in humane working conditions.
News of the suicides in Shenzhen Factory Complex (there are over 300 000 people) has long occupied the headlines last year. The company said it will raise worker salaries in order to stem the tide of suicide.