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India
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Apple supplier Wistron says India iPhone factory riot caused up to US$7 million in damage

  • Thousands of contract workers smashed equipment and vandalised cars at the Taiwan-based contractor’s manufacturing facility in Bangalore
  • Apple is sending a team to investigate whether supplier guidelines were flouted, while Wistron said it is working to get the plant running again

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People walk outside the iPhone manufacturing facility trashed over the weekend by workers demanding better wages and conditions. Photo: Reuters
Reuters
The ransacking of an iPhone manufacturing facility in India caused up to T$200 million (US$7.12 million) in damage though production facilities were not as badly hit as reported, its Taiwan-based operator Wistron Corp said on Tuesday.

Thousands of contract workers gathered on the grounds of the Wistron site on the outskirts of India’s tech hub of Bangalore on Saturday demanding unpaid wages and better working hours.

As police arrived, the crowd turned violent and video from the scene showed people armed with rods and sticks smashing equipment and vandalising cars. Wistron initially estimated damages worth US$60 million.

However, in a statement to the Taiwan Stock Exchange on Tuesday, the company said major production facilities and warehouses had not been as seriously damaged 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, it said.

Wistron shares fell around 2.5 per cent in early Asia trade, underperforming Taiwan’s broader stock market.

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

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