$12 Billion Foxconn Plant in Brazil is Having Major Troubles

 

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According to Reuters, the Foxconn plant in Brazil isn’t working out the way the company had hoped. We heard about this plant a while back, but at the time things seemed to be going well.

What’s the problem? It turns out that there are issues with negotiations over tax breaks as well as problems with a lack of skilled workforce. It’s unfortunate, but high taxes has caused such factories to struggle in Brazil.

Originally, there was word that the production would begin in July, that was later pushed back to November, says Reuters, adding that “now, it is unclear whether the project will ever get off the ground.”

Government officials in Brazil says that Foxonn has “crazy demands” for tax breaks “and other special treatment.”

Aside from manufacturing, it’s also a blow to Brazil because they have been trying to grow economically. A factory as big as a Foxconn plant building iPads would surely have helped.

[Via Reuters]

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