TAIPEI (Reuters) - A unit of Hon Hai Precision Industry Co Ltd <2317.TW>, the world's largest contract manufacturer of electronic goods, will shut operations at a mobile-phone facility in India due to a change in its customer base, it said on Thursday.
The facility in southern India will shut down at end-December, it said, but did not give details about the changes in the customer base.
"This action is also related to a restructuring being carried out of our India operations," according to the statement from FIH Mobile Ltd <2038.HK>, a mobile-product arm of Hon Hai, which assembles products for clients like Apple Inc
The factory in India currently employs 1,700 workers, the company said.
Hon Hai, which employs over 1 million people worldwide, has been attempting to diversify into new industries, investing in a 4G network in its native Taiwan and a South Korean IT services provider.
It reported a 12.9 percent rise in revenue in November, traditionally a high season as it reaps the benefits of key clients' holiday gadget sales.
Kylie Huang, a Taipei-based analyst with Daiwa-Cathay Capital Markets, said the shutdown also reflects Hon Hai's redeployment of resources toward fast-growing local Indian tech brands like Micromax Informatics Ltd
"This is a long-term move on FIH's part," Huang said.
(Reporting by Michael Gold; Editing by Muralikumar Anantharaman)
