Pegatron said in a statement released early on Sunday that there was some damage to machinery but it can readjust the facility so the impact on its operations and revenues will not be big.Pegatron has been a supplier for the CDMA iPhone 4 and has also been ramping up to begin adding to iPhone 4S capacity, with most of its production set to be focused on Asian distribution. There have also been claims that Pegatron is coming on board as a manufacturer for the iPad 3.
A source with knowledge of the matter said the facility affected is partly used to make products for Apple.
The news is reminiscent of that regarding a May explosion at one of Foxconn's facilities where it worked on Apple products, including the iPad. That explosion killed three workers and injured well over a dozen others.
Update: Reuters has updated its report to note that 61 workers were injured in the explosion and that the factory had not yet begun production. The facility is said to be planned to produce back panel parts for the iPad 2. Apple has also issued a statement on the situation:
"Our hearts go out to the people who were hurt in Songjiang. We are working closely with Pegatron to understand the cause of this accident," said spokeswoman Carolyn Wu.