Taiwan based Foxconn Technology Group, which makes electronics components for many top electronics companies and assembles Apple iPhones, announced it had to close one of its plants in China Monday. The closing followed a riot that took place involving over 2,000 workers in one of the many dormitory facilities the plant has.
Officials would not say how long the plant would be closed, but one person contacted by news agencies via telephone said it could be closed as long as 72 hours. The plant, located in the northern province of Shanxi employs approximately 79,000 workers. Officials from the company and local police are investigating why the disturbance took place.
There have been a number of incidents that have taken place in plants run by Foxconn. The name Foxconn is the trade name for the world’s largest electronic goods contract maker Hon Hai Precision Co. Hon Hai’s stock price dropped by close to 1%, following the announcement of the disturbance and plant closing.
The incident, said Foxconn, started when employees began to argue about a personal matter at about 11:00 pm Sunday night in one of the dormitories that is operated by a private company. Local police immediately responded by could not gain control of the situation until after 3:00 am Monday morning.
The company said the problem was due to employees arguing with one another however, a number of postings on social websites suggested that security guards in the dormitory had been the root cause of the disturbance. One posting even accused guards of beating one worker to near death.