Foxconn's Brazilian plant faces hurdles

Beijing time May 7 Morning news, according to Brazilian media reported in Friday, Foxconn hopes to start assembling the ipad in Brazil this July, but as part of its top 12 billion dollar investment-building program, the company still hopes to receive tax cuts and other government concessions.　　Foxconn, the maker of Apple's iphone and ipad, said during a visit to China last month by Brazilian President Rousseff, Dilma Rousseff, that it would boost production in Brazil.　　According to the Brazilian newspaper "Folha de S.Paulo" and "Folha de S.Paulo" reported that Foxconn also put the ipad in Brazil's expected production time from November to July, hoping to take full advantage of the Brazilian consumer market for the large demand for this product. "This is a bold timetable," said Aloizio Mercadante, Brazil's technology minister, Arroizzio Mocadante. We will make every effort to promote the implementation of this plan.　　"Foxconn's investment plan has cheered Brazilian officials, who want to boost the added value of the country's manufacturing supply chain, despite the high cost of labour and taxes and the glut of liquidity that has caused other companies to suffer." The plan will help Foxconn and Apple expand their tentacles in Brazil better. As import tariffs and production costs are too high, local High-tech products are usually priced above the market average.　　Apple's cheapest ipad is currently priced at about $860 in Brazil, compared with $400 in the US market. But there are still some hurdles to bringing the deal to full effect.　　According to Brazilian media reports, Foxconn CEO Terry Gou recently gave Ms Rousseff a long letter detailing some of the conditions for short-term and long-term investments. The report said Foxconn was negotiating with the government on tax incentives and other measures to streamline the import of parts and components to achieve localized assembly.　　Foxconn also wants the Brazilian government to send 200 Brazilian engineers to China for training as soon as possible.　　Foxconn hopes that the first batch of ipads assembled in Brazil will be able to use imported components, and that the next few years will be followed by localized production of screens and other components.　　Factors such as a shortage of skilled workers have led some Brazilian economic officials to question privately whether Foxconn's total investment can reach $12 billion trillion. In addition, Mocadante said the investment would be financed through loans from the Brazilian National social and Economic Development Bank (BNDES). But with high inflation, the agency is under pressure to shrink lending growth. (PEI)