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    Foxconn and Pegatron halt production in Chennai

    Chennai, India - 3 December 2015: Motor bikes and vehicle traffic drive through a flooded intersection in Channai, India.

    Taiwan’s Foxconn and Pegatron have halted production of Apple iPhones at their factories near Chennai in southern India because of heavy rains, four sources close to the matter said on Monday.

    Heavy rains lashed the city of Chennai in Tamil Nadu state, a major electronics and manufacturing hub, with floodwater sweeping away cars and shutting its airport as Cyclone Michaung headed down the coast to the neighbouring state of Andhra Pradesh.

    Foxconn, which employs about 35,000 people at its Tamil Nadu iPhone factory, has yet to decide whether to resume production on Tuesday, two sources said.

    Foxconn has rapidly expanded its presence in India by investing in manufacturing locations in the south of the country as Apple looks to shift some production away from China.

    Apple recorded its highest ever quarterly shipments from India in the quarter ending September at more than 2.5 million units, data from market analytics firm Counterpoint Research showed.

    Apple declined to comment. Foxconn and Pegatron did not immediately respond to Reuters’ requests for comment.

    This is the second time in recent months that Pegatron has been forced to shut its factory, having temporarily halted assembly of iPhones after a fire in September.