• Save
Foxconn-Master Kong Merger
Upcoming SlideShare
Loading in...5

Like this? Share it with your network


Foxconn-Master Kong Merger

Uploaded on

My annual April Fool's parody for higher-level ESL students. The standard disclaimer for parodic work applies. Enjoy.

My annual April Fool's parody for higher-level ESL students. The standard disclaimer for parodic work applies. Enjoy.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads


Total Views
On Slideshare
From Embeds
Number of Embeds



Embeds 18

http://tweetminster.co.uk 12
https://twitter.com 3
http://beta.tweetminster.co.uk 2
https://si0.twimg.com 1

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

    No notes for slide


  • 1. Foxconn Announces MergerWith Snack Food Giant, Moveto TianjinBEIJING | Sun Apr 1, 2012 8:00am CST(Reuters) - Taiwanese electronics giant Hon Hai Precision Industry Co., Ltd., better known asFoxconn, stunned the markets with news of a merger with Taiwans Tingyi Holding Corp., knownfor its popular Master Kong brand of instant noodles and beverages, and the subsequentannouncement of plans to relocate most of Foxconns Shenzhen facilities to Tianjin.According to a press release sent to industry reporters at 12:00am on Sunday, the Hon Hai-Tingyimerger will result in the creation of a new company and brand, Fushikang Shifu, which will specialize inhigh-quality consumer foods and low-cost electronics assembly. The new company will have anestimated market cap of US $22B.Despite a steady profit stream and major contracts with companies such as Apple and Dell, Foxconn hasfaced continual criticism over its labor practices, and the company now faces rising costs in ChinasShenzhen Special Economic Zone, where steady increases in the minimum wage mean that the averageFoxconn worker earns more than 2,200 CNY.By contrast, Tianjin, which is already the mainland China production hub for Master Kong, offers thenewly-created Fushikang Shifu considerably lower labor costs, easy access to a major shipping port innorth China, and an endless supply of Tianjin Jian Bing Guozi for company executives.Tianjin TEDA Special Economic Zone spokesman Fu Liyu praised the move, saying that Fushikang Shifuwould bring more than a four hundred thousand jobs and countless varieties of new pollution to theTEDA area.In the press release, Fushikang Shifu announced its intentions to not only share the revenue streams ofits parent companies but also mingle technological expertise and push into what some are calling theluxury instant noodle market.Steve Rand, author of Chinas Rise to Luxury, argues that Chinas high-end luxury consumers are nolonger content to buy the same snack foods as as working class Chinese. "They want something thatsays other noodles are for farmers, and Fushikang Shifu is the first company that can fill that niche."With that in mind, Fushikang Shifu plans to incorporate touchscreen displays in the packaging of upscaleinstant noodles before next Chinese Lunar New Year. The company says the displays will allowconsumers to play games such as "Super Master Kong" while receiving targeted advertising for luxurybrands like Gucci and LV.Apple CEO Tim Cook reportedly toured the Binhai New Area with Fushikang Shifu representatives aftervisiting nearby Beijing this week and offered his seal of approval for the move. According to a sourcewithin the delegation, Cook was impressed by TEDAs clean, empty streets and the rounded rectanglesof local architecture, and suggested hed like to open an Apple Store there.The President of Hon Hai, Terry Gou, who was previously under fire for comparing his workforce toanimals, spoke with reporters in conference call about the merger this morning."When golfing with Wei Ing-Chou one day I realized that what animals really need to be motivated isMaster Kong Iced Green Tea," said Mr. Gou. "Our workers will get to drink it for free. Theyll have to payextra for Chivas Regal, though."Tingyi Holding Corp. CEO Wei Ing-Chou could not be reached for comment.(Reporting by Edmund Backhouse in Beijing and Mike Daisey in Shenzhen)