Japan Disaster Halts Factory Operations

For domestic and multinational companies hit hard by the Japan earthquake, the road to reconstruction could be long and halting after a 9.0 earthquake and tsunami damaged production facilities that supply the domestic and international markets.

 

The Wall Street Journal reports that Texas Instruments Inc. projects that the factory in Miho—which accounted for about 10% of its revenue in 2010—was damaged in the disaster and won't ship at full volume until September.

 

Meanwhile, Toyota Motor Corp. says it is suspending production at all domestic plants through Wednesday. The shutdowns mean 40,000 vehicles won't be produced, a spokesman for the world's biggest auto maker by sales, told the Journal. Another Japanese firm Hitachi Ltd. says operations at its six manufacturing facilities in the quake-struck areas remain shut. Aircraft-engine parts maker IHI Corp. discloses that two of its plants in the quake areas have been damaged and have no chances of a recovery.

 

According to the newspaper, many companies in a range of industries have suspended operations at their plants, but they have disclosed little about what they are finding. If disruption to factories last for several weeks, production of domestic and foreign companies relying on Japan-based firms could be hit.

 

 

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