A factory in the Chittoor district of the Indian state of Andhra Pradesh, where Foxlink manufactures charging cables for iPhones, was engulfed in a massive fire on Monday, causing part of the building to collapse to the ground. There were no casualties.
A source with direct knowledge said that Foxlink operates a total of 10 assembly lines at two separate sites at the Andhra plant, four of which have been completely damaged and are unlikely to resume operations within two months.
Production on the remaining six assembly lines is expected to resume later this week. Although they were not affected by the fire, they are currently unable to operate due to damage to the IT servers.
A second source familiar with the developments said Foxlink was a key supplier to Apple in India and “there could be disruptions in the supply chain for iPhones made in India or shipped from India.”
Apple and Foxlink did not immediately respond to requests for comment. The cause of the incident is still being investigated, added the first source.
Discover stories that interest you
The incident is the latest problem faced by Apple’s suppliers in India, from where the company is increasingly ramping up production and exports. Apple has 11 suppliers in the country. Production was suspended at contract manufacturer Apple Foxconn in 2021 due to food poisoning among workers. Wistron India In 2020, the plant suffered from labor unrest due to non-payment of wages.
IMPACT ON BUSINESS
On Tuesday, Reuters visited the Foxlink site, where part of the building was completely scorched and some parts still emitted residual smoke.
Many workers have gathered near the site, some are worried about the status of their contract work. They told Reuters the fire broke out during Monday’s lunch break and some air conditioners exploded as the fire spread.
“The fire is out of control,” one worker said, declining to give his name.
Foxlink management is currently looking into the situation and expects to get a clearer picture of the business impact over the next two days, the first source added.
A police spokesman told Reuters on Monday that the damage at the plant was estimated at $12 million. The staff said the Foxlink factory makes iPhone charging cables, but it’s not yet clear if Apple has other cable suppliers in India.
Cupertino, California-based Apple has bet big on India since it began assembling iPhones in that country in 2017. Wistron and then with Foxconn, in line with the Government of India’s commitment to developing local manufacturing.