Flex logo

FLEX - Flex News Story

$17.42 0.7  4.2%

Last Trade - 13/05/21

Sector
Technology
Size
Large Cap
Market Cap £5.94bn
Enterprise Value £6.76bn
Revenue £17.17bn
Position in Universe 1021st / 6856

UPDATE 2-China probe finds FedEx may have held back over 100 Huawei packages-report

Fri 26th July, 2019 2:41am
* FedEx suspected of violations regarding Huawei shipments
-Xinhua
    * Huawei said on Thursday Flex had withheld 700 mln yuan of
its
goods
    * Flex said "one customer in China" impacted by
uncertainties 

 (Adds quotes from Xinhua report, Flex comments)
    By Josh Horwitz and Sijia Jiang
    SHANGHAI/HONG KONG, July 26 (Reuters) - Chinese authorities
investigating FedEx Corp  FDX.N  suspect the U.S. delivery
company illegally withheld more than 100 packages of Huawei
Technologies  HWT.UL  and that it also violated other laws,
state news agency Xinhua reported on Friday.
    Beijing started a probe into FedEx last month after Huawei
said the U.S. delivery firm had diverted parcels intended for
it. It came after Huawei was placed by Washington on a blacklist
in mid-May that effectively blocks U.S. firms from doing
business with the Shenzhen-based telecoms equipment maker.
    "The investigation showed that FedEx was suspected of
holding up more than 100 Huawei packages entering China," Xinhua
said. "Investigators also discovered clues to other violations
of the company."
    FedEx had no immediate comment on the report. Huawei did not
immediately respond to a request for comment.
    The report comes a day after Huawei said U.S.-listed company
Flex  FLEX.O  "seized" its goods in China.
    The developments mark the latest fallout from Washington's
trade ban on Huawei, which has not only rattled the global
technology supply chain tied to Huawei's $105 billion business
but also is causing much confusion among companies and
organisations well beyond the U.S. borders regarding the limits
of restrictions.  urn:newsml:reuters.com:*:nL4N22S13G urn:newsml:reuters.com:*:nL4N2363BB
    FedEx has apologised for multiple incidents of diversion of
Huawei packages, which it attributed to "operational errors",
and it sued the U.S. government last month for what it said was
an "impossible task" to "police the contents" of export
shipments.  urn:newsml:reuters.com:*:nL2N23U020    
    Huawei told Reuters on Thursday that its contract
manufacturer Flex had withheld some 700 million yuan ($101.81
million) worth of goods in its China factory, confirming a
report by Chinese government-backed newspaper Global Times.
 urn:newsml:reuters.com:*:nL4N24Q2ME
    Flex kept the Huawei assets in its factory in the southern
city of Zhuhai after the U.S. blacklisting and caused losses for
Huawei, according to the report.
    Huawei told Reuters that it has retrieved some 400 million 
yuan of goods last month after negotiations and is still trying
to take back the rest.  
    Flex said on Friday in its quarterly earnings statement that
it would accelerate a move to reduce its exposure to certain
products in China and India after "recent geopolitical
developments and uncertainties", which primarily impacted "one
customer in China". It did not name the customer.
    "We have seen a reduction in demand for products assembled
for that customer," it said.  urn:newsml:reuters.com:*:nASB01UU4
($1 = 6.8757 Chinese yuan renminbi)

 (Reporting by Josh Horwitz in Shanghai and Sijia Jiang in Hong
Kong; Editing by Brenda Goh and Muralikumar Anantharaman)
 ((Sijia.Jiang@thomsonreuters.com; +852 65313893;))
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.