SHENZHEN, CHINA – Foxconn’s chairman Terry Gou said the firm would continue to increase China’s worker salaries and cut hours, according to published reports.

His statement yesterday comes after the electronics manufacturer’s poor working conditions have been exposed by a recent audit by the Fair Labor Association.

Gou also said the maker of Apple iPhones and iPads would build manufacturing facilities in Hainan, China, and expand operations in Brazil.

Apple and Foxconn agreed last week to improve conditions among the 1.2 million workers, say reports. According to the agreement, Foxconn will hire thousands of new workers, eliminate illegal overtime, improve safety protocols, and upgrade housing.