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Apple supplier Wistron puts iPhone manufacturing plant damage at $7 mn

Wistron said on Tuesday that the ransacking of an iPhone manufacturing facility in India caused up to T$200 million ($7.12 million) in damage though production facilities were not as badly hit as reported.
Wistron manufacturing Apple iPhoneThousands of contract workers gathered on the grounds of the manufacturing site on the outskirts of India’s tech hub of Bengaluru on Saturday demanding unpaid wages and better working hours, Reuters reported.

As police arrived, the crowd turned violent and video from the scene showed people armed with rods and sticks smashing equipment and vandalising cars. In a police report seen by Reuters, Wistron estimated damages worth $60 million.

However, in a statement to the Taiwan Stock Exchange on Tuesday, the company said major production facilities and warehouses had not suffered as serious damage as reported by local media, and that it was initially estimating losses at T$100-200 million.

The company is doing its utmost to get the plant back up and running, Wistron said.

“The company has cooperated with the relevant authorities and the police investigation and continues to negotiate with the insurance company,” Wistron added, without elaborating.

Apple said on Monday it was investigating whether Wistron had flouted supplier guidelines. Apple said it was sending staff and auditors to the manufacturing site and was cooperating with police in their investigation. Wistron is one of Apple’s top global suppliers.

Wistron has been making Apple iPhones in India for nearly four years and its operation has been seen as a success story for Prime Minister Narendra Modi’s government that is looking to boost manufacturing in the country and create jobs.

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