Hon Hai announces organizational overhaul
By Ted Chen,The China PostTAIPEI, Taiwan -- Following plans to spin off its connector business unit, Hon Hai Precision Industry Co. is poised to implement a significant overhaul of its organizational structure.
August 15, 2013, 12:07 am TWN
The conglomerate's 13 primary business groups will be reorganized into 12 sub-groups categorized by products offered, in a bid to promote independence in operations, and internal collaborative initiatives.
The move represents a commitment in realizing the company's vision of its eight-screen-and-one-cloud-network strategy, referring to screens for cellphones, tablets and televisions as well as activities relating to internet business and cloud computing.
The company hopes to expand beyond the conventional model of contract manufacturing and assembly, by making forays into software and hardware integration services.
Formerly known as the Network Interconnection Business Group, the business unit has since been renamed the Foxconn Interconnect Technology (FIT), while operating as an independent entity. Hon Hai expects close ties and collaborative efforts to continue post-spinoff.
Meanwhile, the company stated that it is investing US$25 million in a China-based solar power company, whose product offerings include the assembly and production of solar power battery cells and related modules. It is also investing US$41.31 million in two China-based companies, to develop biodegradable plastics materials, in line with the conglomerate's commitment in environmental conservation. The company stated that the plastics material will be initially used in producing protective casings, a popular accessory item sought after by users of consumer electronics.
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