TAIPEI – Foxconn Technology Group has leased a 293-acre plot of land to build new smart warehouses in Zhengzhou, the same Chinese city where the company operates the world's largest iPhone plant.

The 197 million yuan ($28 million) lease in the Zhengzhou Comprehensive Bonded Zone comes after efforts by government officials to convince the Taiwanese assembler to keep its local operations.

The deal was announced days after Foxconn chairman and CEO Liu Young-way visited Zhengzhou, where he met Lou Yangsheng, the Chinese Communist Party's Secretary in central Henan province. Officials assured Liu that the government would provide comprehensive "services" to Foxconn's local operations, and urged the firm to "take root" in Henan, according to a statement published by the municipal government of Zhengzhou, the provincial capital.

Foxconn's operation in Zhengzhou was severely disrupted late last year by the exodus of tens of thousands of employees and worker protests that turned violent amid a coronavirus outbreak, and the company has since secured a new manufacturing site in Vietnam and invested in its Indian subsidiary with plans to quadruple its workforce in India over the next few years.

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