Wisconsin governor wants to renegotiate Foxconn contract

Share on StockTwits

Gov. Tony Evers said Wednesday that he wants to renegotiate Wisconsin’s nearly $3 billion deal by Foxconn Technology Group, stating it is”unrealistic” to believe the firm will employ 13,000 individuals as originally promised.

Evers told me that the nation had been working using Taiwan-based Foxconn to examine revising the initial contract to the planned facility to build liquid crystal display panels because it”deals with a circumstance no longer exists.”

President Donald Trump has touted the project in Wisconsin to the United States of America as a sign of manufacturing’s return. It would be Foxconn production facility outside Asia, but skeptics have questioned the project that has been declared over a year ago.

Under terms of the original bargain fell by Evers’ predecessor Gov. Scott Walker, Foxconn can receive more than $4 billion in state and local tax credits if it employs 13,000 individuals and pay $10 billion from the state.

As being too positive, Democrats criticized This arrangement, including Evers. The incentive package was the biggest of its type in U.S. history to get a foreign company and the largest ever in Wisconsin.

Foxconn, the world’s biggest provider of electronics gear, has insisted that it will satisfy with employment targets and the initial investment as the project’s range was reduced.

Foxconn said it would begin construction later this year around a Generation 6 factory, in which it would produce displays for cellphones tablets, televisions and other devices, last month. Foxconn said it went to build a Generation 10 plant which could have generated screens big.

Evers has been asked if he thinks Foxconn will use 13,000 men and women in the state.

“I think at this point in time which could be an unrealistic expectation when they’re reevaluate the footprint of what they’re doing,” Evers said. “So, 13,000 people as Foxconn workers is likely tricky to envision for me .”

Evers said he did not understand what a number would be.

“Less, that is for certain,” he explained.

The reduction in this project’s magnitude means modifications must be made to the contract which was based on Foxconn building a center, Evers said.

“It’s our objective to be certain that the taxpayers are safeguarded and environmental criteria are protected and we feel that we need to look at that arrangement and see whether it should be properly used as a consequence fix it.”

Mark Hogan, the leader of Wisconsin’s economic development agency which negotiated the Foxconn contract,” said he along with Evers’ top aide have been in”frequent conversations” with the company since it announced plans to construct a smaller factory.

Those talks, which include the impact of Foxconn’s”evolving plans” about the contract, will last as construction proceeds, Hogan stated.

The possibility of rewriting the contract brought criticism against the Wisconsin state Senate’s leader, although A Foxconn representative had no immediate comment.

“If the state is prepared to renege on its commitment to Foxconn and open up a contract without any understanding by both parties, then what guarantee can Wisconsin make to some other company that wishes to expand here”

Assembly Speaker Robin Vos stated he was worried Evers would try to”undermine the state’s contract with Foxconn,” but he said that the arrangement was”ironclad.”

“As Foxconn functions to make 13,000 jobs in Wisconsin, I’m open to hearing whether any flexibility is needed to attain that goal, which I hope is the aim of Governor Evers,” Vos said in an statement.

Evers also stated he didn’t believe chairman and CEO Terry Gou’s choice would affects the Wisconsin job. Gou and Wisconsin officials negotiated the deal and has been a frequent visitor to the nation.


Follow Scott Bauer on Twitter: https://twitter.com/sbauerAP