Japan Earthquake Forces Major Firms to Halt Operations, Sparking Economic Concerns
Tokyo (ANTARA) - A magnitude 7.1 earthquake that struck Kumamoto Prefecture, Japan, has forced several semiconductor factories and other industries to halt operations, raising concerns about the economic impact should the closures persist.
Sony Semiconductor Manufacturing Corp., a subsidiary of Sony Group Corp., halted operations at its plant in Kikuyo shortly after the earthquake struck on Tuesday.
The company has yet to set a schedule for resuming production activities.
Two other major chip manufacturers, Renesas Electronics Corp. and Tokyo Electron Ltd., also suspended operations at their respective plants in Kumamoto.
Mitsubishi Electric Corp. likewise halted production at its facilities in Koshi City and Kikuchi.
Meanwhile, Toyota Motor Kyushu Inc. briefly restarted three of its plants in Fukuoka Prefecture after carrying out safety inspections.
However, the company subsequently decided to halt operations again from Wednesday evening until Friday evening.
Toyota cited logistics disruptions and the condition of its suppliers as reasons for the temporary suspension.
Honda Motor Co. also halted production at its motorcycle and engine plant in Ozu City until Friday.
Nissan Motor Co. announced it would partially suspend operations at two of its plants in Fukuoka Prefecture from Thursday afternoon due to component supply delays.
Production stoppages also occurred across various other industrial sectors.
Suntory Holdings Ltd. halted activities at its beer factory in Kashima, whilst Mitsubishi Chemical Corp. temporarily closed its plant in Uto.
Nippon Paper Industries Co. is still assessing the extent of damage at its Yatsushiro plant after the chimney at the facility suffered severe damage.
The company has not been able to confirm when production will resume.
The earthquake also disrupted logistics services in Kumamoto.
Japan Post suspended services at post offices across the prefecture, whilst Yamato Transport halted parcel handling.
Sagawa Express also temporarily suspended parcel collection and delivery services in a number of areas.
Source: Kyodo