Foxconn to set up shipping hub at Kaohsiung Harbour

TAIPEI: Foxconn Electronics (Hon Hai Precision Industry) has issued a filing with the Taiwan Stock Exchange (TSE), responding to recent reports which said the company had withdrawn the promise given to the Kaohsiung City government to set up a global shipping hub at Kaohsiung Harbour, located in the southern port city of Taiwan.

In the filing, Foxconn Electronics said it had never entered into any firm agreement to invest in Kaohsiung Harbour.

However, Foxconn said it will go ahead with its plans to set up an R&D centre at Kaohsiung Software Park and that the delay was because of the worldwide economic crisis.

Terry Guo, chairman of Foxconn Electronics, had recently told the media in Taiwan that the company will stop making investments in Taiwan and also relocate its headquarters to another country if the government of Taiwan goes ahead with its plans to remove an article from a Bill, which is currently under legislative review. The article provides for companies like Foxconn Electronics, which have their global headquarters in Taiwan, a preferential tax rate of 15 p.c.

Later, Foxconn Electronics explained that Terry Guo was misquoted and that the company’s position was that it will leave Taiwan even if the tax cut is offered, arguing that it would be unfair to other Taiwan-based companies that will not benefit from the new rules.