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Edition: U.S. Article Comments (0) Slideshow Global Technology Summit Facebook looks at China Competition gets ugly in hot mobile games market Google, Apple not unassailable in smartphone race Verizon eyes family data plans European start-ups shy away from IPO frenzy Venture funds look beyond social media Alcatel CEO looks to future growth SAP sees growth from new businesses NXP says demand for NFC chips to soar Video: LivingSocial's Tim O'Shaughnessy on company growth Follow Reuters Facebook Twitter RSS YouTube Read Israeli rebuke of Obama exposes divide on Mideast | 20 May 2011 Predictor of May 21 doomsday to watch it on TV | 19 May 2011 Majority of Americans support gay marriage in poll 20 May 2011 Murder trial of Casey Anthony set to begin Tuesday 20 May 2011 Media zoom in on mystery Schwarzenegger mistress | 18 May 2011 Discussed 276 Obama and Netanyahu face tense meeting on Mideast 81 Israel-Palestinian violence erupts on three borders 69 Boehner says ready to cut budget deal today Watched End of the world as we know it...on May 21 Wed, May 18 2011 Arnold Schwarzenegger's mystery woman identified Thu, May 19 2011 Netanyahu rejects Obama's border proposal Fri, May 20 2011 small business The top 100 business minds What does the head of Al Jazeera and comedian Conan O'Brien have in common? They're two of the world's 100 most creative business people, according to Fast Company magazine. See who else made the list. Full Article VC funds look beyond social media Can a Navy SEAL help your business? Bad weather is big business for startup Apple probes blast at Chinese plant linked to iPad Tweet Share this By Poornima Gupta SAN FRANCISCO (Reuters) - Apple Inc is investigating an explosion that killed two people, injured 16 and forced a production halt at a Foxconn International Holdings Ltd factory in China said to produce the popular iPad... Email Print Factbox FACTBOX-Oil production shut in by Alberta wildfires Tue, May 17 2011 Related News UPDATE 1-Apple, Foxconn review China factory explosion Fri, May 20 2011 Blast at Foxconn plant linked to iPad kills 2-WSJ Fri, May 20 2011 Foxconn sees dramatic improvement in 2011 results, shares jump Wed, May 18 2011 Honda and Nissan accelerate efforts to resume full output Tue, May 17 2011 Analysis & Opinion Tech wrap: Liberty Media eyes Nook e-reader China making improvements with product safety, CPSC chief says Related Topics Technology » Media » China » iPad » Steve Jobs » 1 / 2 Firemen arrive at a Foxconn factory in Chengdu, Sichuan province, May 20, 2011, in this still image taken from video grab. Credit: Reuters/CCTV via Reuters TV By Poornima Gupta SAN FRANCISCO | Sat May 21, 2011 2:11am EDT SAN FRANCISCO (Reuters) - Apple Inc is investigating an explosion that killed two people, injured 16 and forced a production halt at a Foxconn International Holdings Ltd factory in China said to produce the popular iPad 2. Foxconn, part of Taiwan's Hon Hai Precision Industries group and Apple's main manufacturing partner, said in a statement the explosion happened at about 7 pm local time (7 a.m. ET) on May 20. "Production has been suspended at the site of the explosion until the completion of the investigation," Foxconn said in a statement. "The safety of our employees is our highest priority and we will do whatever is required to determine and address the cause of this tragic accident." It did not name the affected plant or say what it made, but China's official Xinhua News Agency said it was the Hongfujin Precision Electronics plant in a high-tech industrial zone west of Chengdu, the capital of Sichuan province. Hon Hai spokesman Edmund Ding said the company is still evaluating losses. He could not say whether group founder and chairman Terry Gou had gone to the site. IPAD AFFECTED Apple shares closed down 1.56 percent at $335.22 on the Nasdaq, which saw a broad sell-off on euro-zone debt worries. The explosion could affect the supply of iPads and investors were watching closely. Apple spokesman Steve Dowling said the company was assessing the situation. "We are deeply saddened by the tragedy at the Foxconn plant in Chengdu and our hearts go out to the victims and their families," he said. "We are working closely with Foxconn to understand what caused this terrible event." Ticonderoga Securities analyst Brian White said the factory makes a lot of iPads because some production had been shifted to the facility from factories in the southern Chinese city of Shenzhen. Apple's iPad 2 commands 80 percent of the burgeoning tablet market in which Motorola Inc and Samsung Electronics Co Ltd also compete. Apple sold 4.69 million iPads last quarter and is scrambling to meet staggering demand for the mobile device, but is heavily backlogged. Executives had expected production to ramp up during the present quarter to meet demand. The plant explosion is the latest setback for Foxconn, the world's largest contract manufacturer. The company made headlines last year after reports emerged about poor working conditions at factories in southern China, which critics say may have helped drive several employees to suicide. The company pledged to improve employee welfare. Facing higher wages in the southern China manufacturing belt, the scene of labor disputes last year, some Taiwanese manufacturers have opted to shift some operations to the country's interior, where costs are lower. Foxconn also has plants in North America and Mexico, as well as in European countries, including Slovakia and Poland. (Additional reporting by Clare Jim in Taipei; Editing by Edwin Chan, Lisa Von Ahn, Richard Chang and Andre Grenon; Editing by Sanjeev Miglani) Technology Media China iPad Steve Jobs Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. 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