6 days ago
Foxconn sells Lordstown car factory for $375m
Taiwan's Foxconn said on Monday it had struck a deal to sell the Lordstown former car factory in Ohio for $375m (R6.73bn), including its machinery, but said it would continue to use the site to make a broader range of products aligned with its strategic priorities.
Foxconn, which makes data centre products for Nvidia and assembles iPhones for Apple, did not elaborate on products to be manufactured at the plant, but said the cloud and networking product business in particularly showed 'significant growth'.
A source with direct knowledge of the matter said the Ohio site would support artificial intelligence data centres, without specifying details.
Foxconn purchased the plant, a former General Motors small-car factory named after the town in Ohio where it is based, in 2022 from now-bankrupt US electric vehicle start-up Lordstown Motors Corp for $230m (R4.13bn), as part of its efforts to expand into EVs.
Foxconn also invested in Lordstown and the companies started making electric pickup trucks there. But the partnership later soured, with Lordstown going out of business and suing Foxconn.
Foxconn said on Monday it sold the factory to an 'existing business partner', without giving details.
It also said the company remained committed to automotive customers in the US and said it would be able to rapidly ramp up automotive production to meet customer demand when required.
Foxconn has expanded beyond its traditional role as an iPhone assembler. Last week it formed a strategic partnership with industrial motor maker TECO Electric & Machinery to build data centres.
