Hon Hai and Monarch Tractor To Build Next-Generation AgTech Equipment

Rhea-AI Summary

Hon Hai Technology Group (Foxconn) has signed a contract manufacturing agreement with Zimeno Inc., DBA Monarch Tractor, to produce advanced agricultural equipment and battery packs at its Ohio facility. This marks Foxconn's first contract following its acquisition of manufacturing operations from Lordstown Motors. Full-rate production of Monarch Tractor’s MK-V Series is set to begin in Q1 2023. The partnership emphasizes Foxconn's commitment to expand in the electric vehicle market and enhance sustainable farming practices.

Positive

• First contract manufacturing engagement for Foxconn after acquiring Lordstown Motors' facility.
• Scheduled full-rate production of Monarch Tractor's MK-V Series by Q1 2023, indicating strong growth potential in agricultural technology.
• Foxconn's increasing focus on the electric vehicle market aligns with industry trends.

Negative

• None.

LIVERMORE, Calif. & TRUMBULL COUNTY, Ohio--(BUSINESS WIRE)-- Hon Hai Technology Group (“Foxconn”)(TWSE:2317) today announced the signing of a contract manufacturing agreement (CMA) with Zimeno Inc. DBA Monarch Tractor (“Monarch Tractor”) to build next-generation agricultural equipment and battery packs at the Foxconn Ohio facility.

Hon Hai Technology Group (“Foxconn”) has signed a contract manufacturing agreement (CMA) with Zimeno Inc. DBA Monarch Tractor (“Monarch Tractor”) to build next-generation agricultural equipment and battery packs at the Foxconn Ohio facility. (Photo: Business Wire)

“Leveraging Foxconn’s manufacturing strengths, world-wide network of industry leaders and supply partners, and our new partnership with Monarch Tractor, Foxconn is positioned and eager to contribute to the ongoing and future success of Monarch Tractor, its products and its customers,” said Young Liu, Chairman of Hon Hai Technology Group. “This partnership reflects Foxconn’s growing center of gravity for autonomous electric vehicle production and the potential that can emerge from forward-thinking collaborations.”

Full-rate production of Monarch Tractor’s MK-V Series is scheduled to begin Q1 2023 at the Foxconn Ohio facility, an approximately 6.2 million square foot campus of scalable production space. This will follow production of Monarch’s Founder Series in Q4 of 2022 at Monarch Tractor’s Livermore, California, manufacturing facility.

"Creating the industry's most advanced tractor demands a manufacturing partner with the experience to quickly scale and execute with precision," said Praveen Penmetsa, Co-Founder & CEO of Monarch Tractor. “Foxconn is an EMS leader whose manufacturing and solutions are world-renowned. We are proud to partner with Foxconn and work together to transform the future of farming."

In May 2022, Foxconn assumed manufacturing operations at its Ohio facility after completing an Asset Purchase Agreement (“APA”) with Lordstown Motors Corp. (Nasdaq:“RIDE”). The agreement with Monarch Tractor is the first contract manufacturing engagement by Foxconn following the closing of the APA. It embodies the Foxconn vision to expand its contract manufacturing in the EV market. The agreement also continues the transformation of Foxconn capabilities in the Mahoning Valley.

About Hon Hai

Established in 1974 in Taiwan, Hon Hai Technology Group (“Foxconn”) (2317: Taiwan) is the world’s largest electronics manufacturer. Hon Hai is also the leading technological solution provider, and it continuously leverages its expertise in software and hardware to integrate its unique manufacturing systems with emerging technologies. Hon Hai has expanded its capabilities into the development of electric vehicles, digital health, and robotics, and three key technologies – new-generation communications technology, AI, and semiconductors – which are key to driving its long-term growth strategy. In addition to maximizing value-creation for customers who include many of the world’s leading technology companies, Hon Hai is also dedicated to championing environmental sustainability in the manufacturing process and serving as a best-practices model for global enterprises. To learn more, visit www.honhai.com.

About Monarch Tractor

Monarch Tractor is working to utilize 21st-century technology to empower farmers by enabling profitable implementation of regenerative, sustainable and organic practices. Monarch Tractor, the world’s first fully electric, driver optional, smart tractor, enhances farmer’s existing operations, alleviating labor shortages, and maximizing yields. Monarch is committed to elevating farming practices to enable clean, efficient, and economically viable solutions for today’s farmers and the generations of farmers to come. With cutting-edge technology, global reach, and an experienced team, Monarch is delivering meaningful change for the future of farming. For more information, visit www.monarchtractor.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220809005484/en/

Jimmy Huang

Acting Spokesman for Hon Hai Technology

media@foxconn.com

Donna Loughlin Michaels

LMGPR for Monarch Tractor

(408) 393-5575 | donna@lmgpr.com

Source: Hon Hai Technology Group

FAQ

What is the partnership between Foxconn and Monarch Tractor about?

Foxconn has signed a contract manufacturing agreement with Monarch Tractor to produce next-generation agricultural equipment and battery packs at its Ohio facility.

When will production of Monarch Tractor's MK-V Series start?

Full-rate production of Monarch Tractor's MK-V Series is scheduled to begin in Q1 2023.

What did Foxconn acquire from Lordstown Motors?

Foxconn acquired manufacturing operations from Lordstown Motors Corp. as part of an Asset Purchase Agreement.

How does this partnership impact Foxconn's business strategy?

The partnership reflects Foxconn's strategy to expand its contract manufacturing capabilities in the electric vehicle and agricultural equipment sectors.

What significance does this agreement have for Monarch Tractor?

This agreement allows Monarch Tractor to leverage Foxconn's manufacturing expertise, aiding in the production of innovative agricultural technology.