Foxconn Chairman Meets With Trump as Wisconsin Plant Plans Fall Behind -- Update
May 02 2019 - 4:21PM
Dow Jones News
By Valerie Bauerlein
Foxconn Technology Group Chairman Terry Gou reaffirmed his
commitment to a planned Wisconsin factory with a trip to the state
Thursday, a day after meeting with President Trump at the White
House.
The Apple Inc. supplier said that Messrs. Gou and Trump
"discussed the latest updates and the positive progress of the
Wisconn Valley Science and Technology Park project among other
matters."
White House press secretary Sarah Sanders confirmed the meeting
and called Mr. Gou "brilliant" in a statement Thursday. "Mr. Gou is
spending a lot of money in Wisconsin and soon will announce even
more investment there," she said.
The Taiwanese manufacturing giant is lagging behind its
projections for the Wisconsin liquid-crystal display factory, where
it pledged two years ago to invest $10 billion and hire 13,000
people by 2032.
On Monday, The Wall Street Journal reported Foxconn had spent
only $99 million, 1% of its pledged investment, as of the end of
December, according to its latest state filings. The company had
fewer than 200 employees, though it projected having as many as
2,080 in-state employees by the end of 2019, state filings
show.
The Foxconn project is one of the biggest U.S. public-incentive
deals ever offered to a foreign company, a more than $4 billion
package of state and local tax breaks and infrastructure
investment.
President Trump has been involved with the Wisconsin project
since its inception, and said he was the one who advised Mr. Gou to
build in rural southeastern Wisconsin. At last year's
groundbreaking, President Trump touted the plant as a pillar of his
plan to bring advanced-manufacturing jobs to the industrial Midwest
and described Chairman Gou as "one of the most successful
businessmen in the world, very few people even close."
But President Trump didn't mention Foxconn in a Saturday night
rally in Green Bay, a rare omission for a project he has described
as "the eighth wonder of the world."
As he arrived for his White House visit Wednesday, Mr. Gou wore
a baseball cap decorated with the Taiwanese and American flags, and
presented a cap like it to President Trump, according to Taiwan's
official Central News Agency. On his official Facebook page, Mr.
Gou posted photos of himself standing outside the White House and
saluting while standing in front of the Lincoln Memorial.
Mr. Gou, who recently announced his candidacy for president of
Taiwan, also discussed his political future with President Trump,
according to Taiwan's news agency. The White House said the two men
didn't discuss the campaign.
The U.S., like most countries, doesn't officially recognize
Taiwan, having switched diplomatic recognition to China four
decades ago.
Wisconsin Gov. Tony Evers, a Democrat who defeated Republican
Scott Walker last fall, wasn't informed of or invited to the White
House meeting, according to his spokeswoman.
The governor met with Mr. Gou Thursday. Mr. Evers made no
comment to reporters as he left the meeting. At an unrelated news
conference Thursday morning, Mr. Evers said he planned to tell Mr.
Gou that he was eager to help Foxconn succeed, as well as ensure
the project protects taxpayers and meets the state's environmental
standards.
The governor said on April 23 that Foxconn is seeking changes in
its contract with Wisconsin, which would award up to $2.85 billion
in incentives if Foxconn meets employment and investment
benchmarks. Mr. Evers asked the company to provide details on the
changes soon "so that we can all view this project with as much
relevant information as possible."
The local governments in Mount Pleasant, the factory site's
location about 20 miles south of Milwaukee, have borrowed $350
million so far to clear and prepare a 1,200-acre site for Foxconn.
The site is mostly barren, except for heavy equipment and a
multipurpose building used as a site for staging construction
equipment.
Foxconn said this week that it is picking up the construction
pace after a monthslong winter break. Foxconn said it recently
awarded $34 million in contracts for construction of utilities and
roadways at the site. The company said it expects to begin "the
next phases of construction...by summer 2019 with production
expected to commence during the fourth quarter of 2020."
--Rebecca Ballhaus and Yoko Kubota contributed to this
article.
Write to Valerie Bauerlein at valerie.bauerlein@wsj.com
(END) Dow Jones Newswires
May 02, 2019 16:06 ET (20:06 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Apple (NASDAQ:AAPL)
Historical Stock Chart
From Aug 2024 to Sep 2024
Apple (NASDAQ:AAPL)
Historical Stock Chart
From Sep 2023 to Sep 2024