Fuji Group’s Hongfujin Precision Industry (Hengyang) Co., Ltd., a subsidiary of Foxconn, announced that due to insufficient orders to sustain operations, the company will officially cease operations at the end of this month. This decision will directly impact thousands of employees.
In a closure notice dated August 28, the Apple’s major contractor, Hongfujin Precision Industry (Hengyang) Co., Ltd., stated that due to market conditions and adjustments in their main customer’s business strategy, there are not enough orders to support future operations. After careful consideration, the company has decided to officially cease operations on September 30, 2025, and will handle related business and assets in an orderly manner.
Hongfujin has provided two options for the placement of its employees: firstly, employees can choose to be prioritized for relocation to other group facilities in Wuhan, Shenzhen, Huizhou, etc.; secondly, for those unwilling to relocate, the company will terminate labor contracts in batches based on actual production conditions and provide economic compensation in accordance with the law.
An employee surnamed Tian from a labor agency in Hengyang, Hunan, mentioned that in recent years, many foreign trade factories have been closing down, and even labor agencies like theirs are facing the risk of dissolution. She stated, “There is now a surplus of workers while positions are lacking. Many factories here are closing down one after another, and if a large company like Hongfujin can’t survive, smaller factories are even worse off.”
The closure notice dated August 28, 2025, is seen as a clear signal of Foxconn’s further contraction in the industrial landscape of central China.
A Mr. Pei, who has been involved in mechanical maintenance at the Hongfujin factory for many years, mentioned that the company’s handling is indeed more thoughtful than many domestic enterprises. However, he expressed concerns about restarting in Shenzhen or Huizhou due to his age and the difficulty of finding suitable work in Hengyang.
According to Mr. Xu, a rights activist in Shaoyang, mainland foreign enterprises have once solved the livelihood problem for millions of families. However, in recent years, authorities have been heavily supporting state-owned enterprises while putting pressure on foreign and private enterprises, leading to one of the important reasons for the massive exodus of foreign enterprises. He pointed out, “The high land costs, labor costs, and financing costs here, coupled with the transfer of the global industrial chain, have led many foreign factories to choose to leave the mainland, making it difficult for unemployed workers to find suitable jobs again.”
Established in September 2012, the Hongfujin Hengyang plant is a crucial subsidiary of the Foxconn Technology Group, with a total investment of 99 million US dollars and a registered capital of 38 million US dollars, located in the Baishazhou Industrial Park in Yanfeng District of Hengyang City. At its peak, the factory employed about 30,000 workers and once achieved an annual output value of over 20 billion RMB.
The announcement of the closure signifies further contraction of Foxconn’s production network in central China. Mr. Wang, a former teacher at the Economics School of Zhongnan University of Economics and Law, analyzed that Foxconn’s withdrawal from Hengyang is part of the trend of the relocation of China’s manufacturing industry in recent years. “On one hand, countries such as India and Vietnam actively provide tax incentives and policy support, accommodating some electronic manufacturing capacity. On the other hand, with the domestic electronic consumption market in China becoming saturated and the pressure of overcapacity increasing, Apple has gradually moved its production lines and requires Foxconn to follow suit, a demand Foxconn cannot refuse.”
Mr. Wang further pointed out that Foxconn’s withdrawal from Hengyang weakens the original manufacturing and export advantages in the central region, “The closure of the Hengyang plant reflects the redistribution of the global industrial chain, and the Chinese authorities should be alert to this.”
It is worth mentioning that in late July 2024, Foxconn Technology Group announced a 1 billion RMB investment in Zhengzhou, Henan, to build a new headquarters building and expand the supply chain to attract more orders. However, just a year later, the Foxconn subsidiary, Hongfujin Precision Industry Hengyang plant, announced its closure, highlighting the trend of the transfer of industries by foreign enterprises in mainland China, raising concerns.