Foxconn Technology said on Monday that it will close down its Taiyuan manufacturing compound, located in the Northern Chinese province of Shanxi following a disturbance that broke out Sunday night involving the company's factory workers.

Initial reports from China's news agency Xinhua have indicated that a brawl had erupted at around 11 PM on Sunday and deteriorated into pockets of scuffle that lasted Monday morning.

Citing statement from local police authorities, Xinhua said the fight was only subdued 9 AM on Monday (local time) when more than 5000 police officers were sent into the sprawling Foxconn compound to pacify the fighting workers.

The overnight clash drew large crowd of spectators and triggered chaotic scenes, Xinhua said on its Monday report.

Scores were also arrested and detained by local security officials while at least 10 people were reported as injured, the Chinese news agency added.

But the figures were contradicted by reports from Reuters on Monday, which said 40 people have been listed as wounded, citing a statement issued by Foxconn officials.

The same statement also declared that an investigation on the incident is now underway.

"The cause of this dispute is under investigation by local authorities and we are working closely with them in this process, but it appears not to have been work-related," Foxconn was quoted by Reuters as saying.

The Monday shutdown, a company spokesman said, was decided to allow police probers to work on the case unhampered.

Reuters said it was informed by an unidentified Foxconn official that the Taiyuan production plant could remain close for up to three days in order for police investigators to determine the cause of the fight, which the news agency said involved as many as 2000 factory workers.

The clash, Reuters said, was mostly confined on a workers' dormitory located inside the Foxconn plant.

Foxconn production facilities were being operated by Taiwan-based Hon Hai Precision Industry, which is regarded as the world's biggest assembler of tech devices from major firms such as Apple, Dell and Hewlett-Packard (HP).

The firm's Taiyuan production site, Reuters said, is part of Apple's supply chain that rolled out the recently unveiled iPhone 5.

Foxconn has been attracting international media attention since 2010 following allegations that it exposes its estimated one million workers to inhumane working environment, with labour groups assailing the company for forcing its underpaid staffs to work long hours.