Taiwan’s Wistron sees no major financial impact from damage to Indian plant

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TAIPEI, Dec.21 (Reuters) – An Indian factory damaged by violence this month was a new facility with limited production and therefore its financial impact will be limited, Taiwanese supplier to Apple Inc. Wistron Corp , who manages the plant, said Sunday evening.

Apple placed Wistron on probation, saying on Saturday it would not grant new business to the Taiwanese contract manufacturer until it dealt with the way workers were treated at its southern Indian factory . workers angry at unpaid wages destroyed property, equipment and iPhones on December 12, causing Wistron to lose millions of dollars and forcing it to close the plant. In a statement to the Taiwan Stock Exchange, Wistron said its consistent policy is not to comment on its business relationships with clients.

Wistron shares fell about 3% at the start of trading, underperforming the overall market.

The company has cooperated with the local government investigation of what happened and “will cooperate with customers on the implementation of the improvement and restoration of the work plan,” Wistron said.

“As the Narasapura plant is a new production line, its production is currently limited and the initial estimate is that there is no major impact on the finances and operations of the company.”

Wistron admitted on Saturday that some workers at the Narasapura factory in Karnataka state were not paid properly or on time, and said he was removing a senior official overseeing its operations in India.

Apple said it would continue to monitor Wistron’s progress on remedial action.

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