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Foxconn can discard planes to build flat screens in Wisconsin



But the company says that going to property development Wisconsin is still expecting to employ up to 13,000 workers.

The plant and its expensive incentive package were controversial since the time it was announced in 2017. It was agreed during the mandate of former Republican governor Scott Walker, who lost his re-election last year. An incentive package was one of the issues in the campaign.

Although the new governor, Tony Evers, was critical of the package, did not depart from the promise from the package.

Foxconn executive director told Reuters that the company found that the US factory could "not compete" with cheaper flat-panel plants elsewhere in the world.

Louis Woo, chief executive officer of Foxconn Terry Goua, told Reuters that the company is now planning to create a "technology hub" in Wisconsin rather than a factory. This would largely consist of research facilities along with some packing and assembly operations. Woo said that three-quarters of Foxconn's jobs will be in research and development and design, not in the production of blue collars. He said he would not be a factory.

Asked about the comments attributed to Woo, Foxconna's spokeswoman did not dispute them.

"We remain committed to the Science-Technology Park project in Wisconsin Valley, creating 13,000 jobs, and our long-term investment in Wisconsin," the company said in a statement. "The global market environment that existed at the time the project was published for the first time changed. As our plans were led to those of our clients, this required adaptation of plans for all projects, including Wisconsin, this new reality, the Wisconsin project remains a priority for our company. "

The state incentive package is ready to give companies up to $ 3 billion in tax credits and breaks. It's one of the biggest incentive packages ever promised to find a factory in the United States. And, according to Wisconsin estimates, it will take at least 2043 for the state to compensate for lost tax revenue.

The state incentive package allows Foxconn to tailor their plans in response to changing business conditions, said Mark Hogan, Chief Executive Officer of the State Independent Economic Development Agency, who negotiated the package. He added that company success depends on his ability to respond to changing customer requirements.

Hogan also noted that Foxconn will get a full incentive package only if it targets all goals for job creation and investment in the state.

"Our constant discussions with company officials reflect Foxconn's continued commitment to the state of Wisconsin," said Hogan.

However, the governor's office announced a statement stating that he was surprised to find out about changing Foxconna's plans.

"Details of the continuous development of this project will require further review and evaluation of our team," said Joel Brennan, appointed to oversee the state-run office managing the package. He said the state would "continue to follow the project to ensure that the company fulfilled its promises".

Village Mount Pleasant and Racine County, where a factory will be built, also agreed to provide $ 764 million tax incentives to help build the facility, including land acquisition and free rental of Foxconn. The state expects to spend about $ 400m on road improvement, including adding two lanes to the nearby interstate 94.

It is unclear whether a change in the power plant will change the incentive package, based on the number of jobs and the amount of investment. Foxconn was originally planning to invest $ 10 billion in the factory.

Foxconn is best known for its massive factories in China that produce products like iPhones for other companies.

The Wisconsin factory plan was announced by Walker and President Donald Trump as a sign of returning jobs to manufacturing in the United States.

"Building this facility is the return of LCD electronics and electronic production to the United States, the country we love," said Trump at that time. "We want to do our jobs there. To make such an amazing investment, President Gou put his faith and trust in the future of the American economy – in other words, if he did not choose, he would definitely not be."

CNN's Jeremy Diamond contributed to this report.


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