Tuesday, December 20, 2011

Explosion at Apple supplier’s plant in China

Yesterday, Apple’s third party supplier Pegatron suffered a massive explosion in one of its plants in China, injuring 61 people, including 23 workers who had to be hospitalized immediately.

“The factory has not started operations yet. Part of the facility is still under pre-operation inspection and part is running trial production,” Pegatron Chief Financial Officer Charles Lin told Reuters on Monday.

The Pegatron plant was to produce back panel parts for the iPad 2, and numerous other products for Apple, as well. However, the blast won’t affect Apple’s supply chain, believes analyst Shaw Wu, who says the setback is quite minor.

“It’s a setback but it’s relatively minor,” Wu said, adding that Pegatron was a third-tier supplier for Apple. “The Foxconn (Chengdu) explosion was a much bigger deal but still they were able to work around it fairly quickly.”

Apple commented on the matter, saying it is currently investigating the cause of the accident.

“Our hearts go out to the people who were hurt in Songjiang. We are working closely with Pegatron to understand the cause of this accident,” Apple spokeswoman Carolyn Wu said.

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