TAIPEI, Aug 4 (Reuters) - Taiwan's Foxconn
said on Monday it had struck a deal to sell the Lordstown former
car factory in Ohio for $375 million, including its machinery,
but said it would continue to use the site to make a broader
range of products aligned with its strategic priorities.
Foxconn, which makes data center products for Nvidia ( NVDA )
and assembles iPhones for Apple ( AAPL ), did not
elaborate on products to be manufactured at the plant, but said
the cloud and networking product business in particularly showed
"significant growth".
A source with direct knowledge of the matter said the Ohio
site would support artificial intelligence data centers, without
specifying details.
Foxconn purchased the plant, a former General Motors
small-car factory named after the town in Ohio where it is
based, in 2022 from now-bankrupt U.S. electric vehicle startup
Lordstown Motors Corp for $230 million, as part of its efforts
to expand into EVs.
Foxconn also invested in Lordstown and the companies
started making electric pickup trucks there. But the partnership
later soured, with Lordstown going out of business and suing
Foxconn.
Foxconn said on Monday it sold the factory to an "existing
business partner", without giving details.
It also said the company remained committed to automotive
customers in the U.S. and said it would be able to rapidly ramp
up automotive production to meet customer demand when required.
Foxconn has expanded beyond its traditional role as an
iPhone assembler. Last week it formed a strategic partnership
with industrial motor maker TECO Electric & Machinery
to build data centres.