Apple supplier Pegatron facing pollution concerns in China
Several subsidiaries of Apple manufacturer Pegatron are addressing complaints after its production facilities came under fire for alleged environmental violations, a new report claims.
Pegatron, one of Apple's manufacturers for the iPhone, has been called out for excessive pollution at its three component subsidiaries in China by a recent environmental report.
The company has responded by noting that is in the process of purchasing equipment meant to curb noise and waste gas for one of its subsidiaries, DigiTimes reports. Pegatron will also work to replace old equipment and hold to a regular maintenance schedule at the subsidiary in order to address concerns.
The report also mentioned that Pegatron's two other subsidiaries had been fined because of polluted water. The company has already made changes to its facilities and will "continue to negotiate with local residents and government to resolve the situation," according to the publication.
Pegatron is set to hold an investor conference on Oct. 27 and is expected to further address environmental concerns there. Also believed to be on the agenda at the conference is the impact that the rumored 10 million iPhone 4S orders Apple has placed with the company will have on its revenues. But, the supplier will likely announce losses for 2011, the report said.
Concerns over Pegatron's environmental compliance come on the heels of the temporary closing of a high-profile laptop case manufacturer's factory in China. Catcher Technology was ordered to close a plant on Sunday that is estimated to provide 60 percent of the unibody enclosures for Apple's laptops. Reports have claimed that the manufacturer will invest $2-3 million into the facility in hopes of resuming production sometime in November.
At the beginning of this year, environmental groups in China called out Apple as the least responsive to environmental and workers' rights issues among a group of 25 technology companies. In August, several groups made public a follow-up report that accused Apple of taking "advantage of loopholes in developing countries' environmental management systems."
Hours before the document was released, Apple reportedly caved to the groups and agreed to initiate a dialogue on the allegations. One concern Apple was said to have voiced to the groups was the fact that some of the suppliers on the report's list did not actually work with Apple.
Since the iPhone maker keeps the names of its partners private, the groups had relied on public information and court documents to compile their list of alleged Apple suppliers.
Apple routinely audits its suppliers and publishes its findings in an annual Supplier Responsibility Progress Report. Last year's report found instances of underage workers and bribery that caused the company to terminate business with some of its partners.
The supplier audit also detailed Apple's response to an incident at a Wintek facility where workers were exposed to toxic n-hexane gas. Apple claims that all affected workers have been successfully treated and compensated, though some former workers have petitioned Apple CEO Tim Cook to address their grievances.
Apple has worked hard to better communicate its environmentally-conscious policies after being targeted by Greenpeace. Those efforts paid off in 2010 when the environmental advocacy group ranked Apple as the greenest electronics maker.
However, the transition to the "cloud" has bruised Apple's reputation for being green, as an April report from Greenpeace accused the company of using "dirty" energy at its $1 billion data center in Maiden, N.C.
Pegatron, one of Apple's manufacturers for the iPhone, has been called out for excessive pollution at its three component subsidiaries in China by a recent environmental report.
The company has responded by noting that is in the process of purchasing equipment meant to curb noise and waste gas for one of its subsidiaries, DigiTimes reports. Pegatron will also work to replace old equipment and hold to a regular maintenance schedule at the subsidiary in order to address concerns.
The report also mentioned that Pegatron's two other subsidiaries had been fined because of polluted water. The company has already made changes to its facilities and will "continue to negotiate with local residents and government to resolve the situation," according to the publication.
Pegatron is set to hold an investor conference on Oct. 27 and is expected to further address environmental concerns there. Also believed to be on the agenda at the conference is the impact that the rumored 10 million iPhone 4S orders Apple has placed with the company will have on its revenues. But, the supplier will likely announce losses for 2011, the report said.
Concerns over Pegatron's environmental compliance come on the heels of the temporary closing of a high-profile laptop case manufacturer's factory in China. Catcher Technology was ordered to close a plant on Sunday that is estimated to provide 60 percent of the unibody enclosures for Apple's laptops. Reports have claimed that the manufacturer will invest $2-3 million into the facility in hopes of resuming production sometime in November.
At the beginning of this year, environmental groups in China called out Apple as the least responsive to environmental and workers' rights issues among a group of 25 technology companies. In August, several groups made public a follow-up report that accused Apple of taking "advantage of loopholes in developing countries' environmental management systems."
Hours before the document was released, Apple reportedly caved to the groups and agreed to initiate a dialogue on the allegations. One concern Apple was said to have voiced to the groups was the fact that some of the suppliers on the report's list did not actually work with Apple.
Since the iPhone maker keeps the names of its partners private, the groups had relied on public information and court documents to compile their list of alleged Apple suppliers.
Apple routinely audits its suppliers and publishes its findings in an annual Supplier Responsibility Progress Report. Last year's report found instances of underage workers and bribery that caused the company to terminate business with some of its partners.
The supplier audit also detailed Apple's response to an incident at a Wintek facility where workers were exposed to toxic n-hexane gas. Apple claims that all affected workers have been successfully treated and compensated, though some former workers have petitioned Apple CEO Tim Cook to address their grievances.
Apple has worked hard to better communicate its environmentally-conscious policies after being targeted by Greenpeace. Those efforts paid off in 2010 when the environmental advocacy group ranked Apple as the greenest electronics maker.
However, the transition to the "cloud" has bruised Apple's reputation for being green, as an April report from Greenpeace accused the company of using "dirty" energy at its $1 billion data center in Maiden, N.C.
Comments
Ok so would you like to pay 20 dollars more per device. I am saying 20 dollars more to get the newest iPhone? Or maybe 50 dollars more. My point... What if we made the damn things in this country!?!? Is that such a crime? Dammit. We are hard workers too. We need the Jobs HERE!!!!!!!!!!!!!!!
How about 2x the current price? How about 3x? Still want an iPhone?
I also need to order a new drive soon again, and I know one thing for sure, it won't be one them "green" drives.
How about 2x the current price? How about 3x? Still want an iPhone?
How about the Government make it easier for companies like Apple to get other companies like the ones in this post to make cost effective and competitive products in this country. Government incentives. Tax breaks and so on. Lets ask a question. Do we want to put people back to work or do we want to be a country who is a slave to china? I believe this country has what it takes to work it out and get it done. Its up to the politicians and the CEO's to get it done!
Ok so would you like to pay 20 dollars more per device. I am saying 20 dollars more to get the newest iPhone? Or maybe 50 dollars more. My point... What if we made the damn things in this country!?!? Is that such a crime? Dammit. We are hard workers too. We need the Jobs HERE!!!!!!!!!!!!!!!
No, I prefer that Chinese people build my iPad 3. It wouldn't be 50 dollars more if it were made in the US, not even close.
No, I prefer that Chinese people build my iPad 3. It wouldn't be 50 dollars more if it were made in the US, not even close.
I can relate and can understand what you are saying. On the other hand.... Hynix had a factory in a few miles down the road from my town. It put close to a thousand people to work. No unions and the workers were not spoiled. They were hard working people and made a living. If Hynix can do it here I think others can as well. I agree that its nice to buy an iPad relatively cheap. Thats one of Apples strong point, and I believe that if Apple could have built it here in this country for the same price they would have. But I am saying that our Government has made it extremely hard for Huge and large corp's to manufacture in this country. I think this attitude can be changed and that it can be made possible to make these products here. Having an attitude of lets build in china is killing our jobs market. It wouldn't be easy but I think its possible to make products like these in this country. It's the greedy corp's and the lobbyist as well as the Consumer who are at fault. And yes I would rather pay less for an iPad. Being that I am a disabled Vet and live off of limited means. But where does it end. When we have 10 million unemployed and no permanent jobs for them. Maybe we should become a socialist state and every one will get a monthly income from mother US.
But I am saying that our Government has made it extremely hard for Huge and large corp's to manufacture in this country.
Yes, I don't disagree with you on that point at all, you are correct, but there are many people in this country who do not want to make it easier for big business, quite the contrary.
Yes, I don't disagree with you on that point at all, but there are people in this country who do not want to make it easier for big business, quite the contrary.
Thats where it has to change. Its killing us in the long run. BTW wouldn't it be nice if Apple Insider had a chat room?
Ok so would you like to pay 20 dollars more per device. I am saying 20 dollars more to get the newest iPhone? Or maybe 50 dollars more. My point... What if we made the damn things in this country!?!? Is that such a crime? Dammit. We are hard workers too. We need the Jobs HERE!!!!!!!!!!!!!!!
These are not jobs that US workers want. Many of these workers are migrant and live in factory dormitories without privacy and thousands of miles from their families, only going home for the new year celebration. The Chinese documentary "Last Train Home" shows the sacrifice these 130 million workers make so that their children, raised by grandparents, can be educated and avoid decades in the factories. I think people should be able to live near their families and that China should address this human rights issues. Assuming that politics isn't involved, I'm glad China is addressing pollution.
A humane Foxcomm factory in Mexican might help provide jobs in Mexico and relieve some immigration pressure.
In this country you have the opportunity to get an education and either get a middle class job or start a business (maybe in a garage like someone named Steve did).
These are not jobs that US workers want. Many of these workers are migrant and live in factory dormitories without privacy and thousands of miles from their families, only going home for the new year celebration. The Chinese documentary "Last Train Home" shows the sacrifice these 130 million workers make so that their children, raised by grandparents, can be educated and avoid decades in the factories. I think people should be able to live near their families and that China should address this human rights issues. Assuming that politics isn't involved, I'm glad China is addressing pollution.
A humane Foxcomm factory in Mexican might help provide jobs in Mexico and relieve some immigration pressure.
In this country you have the opportunity to get an education and either get a middle class job or start a business (maybe in a garage like someone named Steve did).
Who are we to say these jobs aren't what US workers want. There are us workers hanging on by a thread. There are families who are homeless. There are people in this country who are desperate. I bet they would love to have a job right now. Its easy to say that when we have a nice roof over our heads and warm bed to sleep in. This is what makes us so insensitive to things. We in this country don't want these Jobs. Who are we to say such things. Does one person speak for the whole populous? Lets ask the homeless or the family who has no Jobs.
Ok so would you like to pay 20 dollars more per device. I am saying 20 dollars more to get the newest iPhone? Or maybe 50 dollars more. My point... What if we made the damn things in this country!?!? Is that such a crime? Dammit. We are hard workers too. We need the Jobs HERE!!!!!!!!!!!!!!!
Since half of Apples sales are external to the US, why should these people have to pay more just so some people in the USA can have a job? There are jobless around the entire world.
"continue to negotiate with local residents and government to resolve the situation,"
In otherwords, they will work to bribe the right people and/or bribe more.
It's easier/cheaper to throw a few 10k in bribes to the local government's environment department than to spend $millions upgrading factories.
Most Apple products are hits outside worldwide and generate a lot of money which is also outside the US. Better to get this money inside the US and taxed, so that the US economy can create more jobs for US workers.
BTW Stop your war games in other countries and there is even more money to create good jobs for US workers. I mean, financially the US is in an even worst situation than many other third world countries.
No, I prefer that Chinese people build my iPad 3.
Yes, "Because caucasians are just too damn big!"
(granted, that reference was Japanese, not Chinese, but I couldn't resist.)
Ok so would you like to pay 20 dollars more per device. I am saying 20 dollars more to get the newest iPhone? Or maybe 50 dollars more. My point... What if we made the damn things in this country!?!? Is that such a crime? Dammit. We are hard workers too. We need the Jobs HERE!!!!!!!!!!!!!!!
Tell that to the open wall street gang.
What if you had to buy American?
It might be supremely patriotic to stop purchasing imports, but the consequences for US consumers and the economy would be devastating.
http://money.msn.com/how-to-budget/w...-american.aspx
So Pegatron is one of the supplier ... hmmm. Oh Apple ... we love you but is it true that the most favorite toy is the world causes much pollution to make?
I really wish that these articles would stop picking one or two companies and making an example out of them. Apple is identical to the 999 other Fortune 1000 companies who manufacture products in China. It is CHINA's responsibility to enforce their own environmental rules. When a plant (Like Pegatron) produces components for 1000 customers, why does it make sense to pick just one of those customers and blame them for the pollution? China - make some reasonable environmental laws and enforce them rather than blaming the customers.
Oh, and btw, Apple apparently has a better record on health and safety and the environment than most of their other customers, anyway. It wasn't that long ago that we went through this before and a couple of the suppliers said that Apple was the only company that even bothered to audit them.
Ok so would you like to pay 20 dollars more per device. I am saying 20 dollars more to get the newest iPhone? Or maybe 50 dollars more. My point... What if we made the damn things in this country!?!? Is that such a crime? Dammit. We are hard workers too. We need the Jobs HERE!!!!!!!!!!!!!!!
It's not a few dollars more - it's two to three times the cost for most things. The problem is that Apple has no control over most of the costs which make high volume production of products like this expensive in the U.S.
Labor - 10 times the cost of Asia
Insurance
Government subsidies and taxes - China still goes out of its way to bring production into the country
Overheads
Environmental
Health and Safety
Unless the U.S. gets serious about wanting to be a manufacturing country and changes its policies accordingly, we will never see a resurgence of manufacturing in this country. Since it's nearly impossible for us to lower our standards to third world levels (nor should we), it would have to be death with via a tariff to cover environmental damage being done by third world countries as well as health and safety costs. That would go a long way toward leveling the playing field.
Buyer Beware
http://money.msn.com/how-to-budget/w...-american.aspx
Short sighted and incorrect.
First, it takes the extreme position that you should never buy anything unless it's made in America. Very few people actually suggest that. More common (and more reasonable) is to buy American when it is practical.
The 'experts' are undoubtedly speaking on behalf of multinational corporations: "But financial experts say that it's best for America if you buy the cheapest product you can find without sacrificing quality." That is also a very short-sighted view. It fails to take into account the global implications of our relentless trade deficit. For you as an individual, it might be correct that buying the cheapest product makes sense. As a country, it doesn't - you have to add in loss of tax revenue, loss of jobs - which means further loss of tax revenue and unemployment costs, excess global pollution (pollution in China affects us here), and the damage that an endless deficit does to our economy.
Ok so would you like to pay 20 dollars more per device. I am saying 20 dollars more to get the newest iPhone? Or maybe 50 dollars more. My point... What if we made the damn things in this country!?!? Is that such a crime? Dammit. We are hard workers too. We need the Jobs HERE!!!!!!!!!!!!!!!
Agreed!
Do they think they can pollute China just because China has more lax standards? Do you think China is some kind of third world dumping ground?
If you(Foxconn, Pegatron, Wintek, Catcher) can't manufacture responsibly in mainland China, I suggest you go home to Taiwan and do your dirty manufacturing there!
IronTed