NEW YORK, June 11. /TASS/. Auditors of Wisconsin laid claim to the Corporation the Wisconsin Economic Development Corp, which was empowered to provide tax subsidies for a total of $3 billion to Taiwan’s Hon Hai Precision Industry (known by the brand Foxconn) to organize the production of liquid crystal displays and the recruitment of workers for factories in the state. This was reported on Tuesday the newspaper The Wall Street Journal.
According to her, the results of the audit of the Wisconsin Economic Development have questioned the ability of this company of mixed public-private type needs to exercise oversight of the deals with Foxconn, the largest supplier of Apple. The auditors found that the Wisconsin Economic Development was allocated tax subsidies to firms that are unable to create required number of jobs in Wisconsin. So, a joint venture of Walgreens and Boots received $462 million, but was forced to close 17 working rates instead of their increase. In General, the recipients of grants from the Wisconsin Economic Development has fulfilled its obligations to create additional jobs is only 35% from 2011 to 2018, the newspaper cites data of the audit.
This project is indicative of the administration of U.S. President Donald trump. He in August last year at a meeting in the White house with representatives of small and average business has declared its readiness Foxconn to triple, to $30 billion, the volume of investments in the construction of the plant in Wisconsin.
28 July 2017, the Governor of Wisconsin Scott Walker announced the signing with Foxconn Memorandum of understanding, which envisages allocation of $10 billion for the construction of the enterprise for the production of LCD displays in this state. This project aims to create in Wisconsin additional 13 thousand jobs, including about 5.2 thousand to the completion of 2020. According to Reuters, the real figure is about 1 thousand workers in the next year.
Hon Hai Precision Industry is the world’s largest contract manufacturer of electronics, carrying out orders, including Apple. In April 2016 the Taiwan Corporation for $3.5 billion acquisition of 66% stake in the Japanese manufacturer Sharp. The headquarters of Hon Hai is located in Taiwan, but the products it manufactures mainly at its plants in mainland China.
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