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FILE PHOTO: A motorcyclist pbades the Foxconn logo, the commercial name of Hon Hai Precision Industry, in Taipei, Taiwan, on March 30, 2018. REUTERS / Tyrone Siu / File Photo
TAIPEI (Reuters) – Taiwan's Foxconn is currently investigating the sale of its $ 8.8 billion billboard plant in China, people familiar with the issue told Reuters.
Foxconn, formerly known as Hon Hai Precision Industry, is in talks to appoint banks to find a buyer for its LCD plant being built in Guangzhou City, in the south of China, said two people knowing the case directly. .
A sale would come at a delicate time for Foxconn, which has major investments in China, a large list of US customers including Apple Inc., and must follow a difficult path in the middle of the long trade war between Washington and Beijing. It would be one of the largest divestments of China.
Foxconn's talks are at an early stage and have not yet reached a reasonable price for the so-called Gen-10.5 facility, which specializes in large-screen LCDs, the sources said, adding that the sale was not not a guarantee.
"It's not an easy sell and it could take a while," said one source, citing the lukewarm demand for widescreen LCDs.
Foxconn, in a written statement to Reuters, said: "In accordance with company policy, Foxconn does not respond to rumors or market speculation." The sources asked for anonymity because the deliberations are confidential.
US President Donald Trump has sharply raised the stakes of the deadly trade war with China and has upset the global financial markets by promising Thursday to impose a 10% tariff on Chinese imports at $ 300 billion dollars. from September 1st.
Report by Yimou Lee; Edited by Anne Marie Roantree and Muralikumar Anantharaman
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