Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Quake-hit Japan plants restart but Toyota to suspend 18 assembly lines

Published 03/17/2022, 09:52 PM
Updated 03/18/2022, 05:31 AM
© Reuters. FILE PHOTO: A logo of Murata Manufacturing Co. is pictured at the CEATEC JAPAN 2017 (Combined Exhibition of Advanced Technologies) at the Makuhari Messe in Chiba, Japan, October 2, 2017.   REUTERS/Toru Hanai

By Shinji Kitamura and Satoshi Sugiyama

TOKYO (Reuters) -Japanese manufacturers began restarting production at plants in the country's quake-hit northeast, but Toyota Motor (NYSE:TM) Corp said it plans to idle 18 assembly lines for a few days next week due to a shortage of parts from suppliers.

On one hand, the limited damage caused by the magnitude 7.4 temblor has highlighted Japan's success in building resilience against the frequent tremors that shake the archipelago.

But the quake has sparked concerns of further disruptions to a pandemic-hit supply chain for precision components vital to electronics and autos production and in which Japanese manufacturers play a leading role.

Toyota, the world's largest automaker by sales volume, said it will idle the 18 lines at 11 domestic factories, mostly for three days.

It had suspended operations at three factories due to the quake and sees lost production of 20,000 units due to the stoppages. Toyota has already cut its global production target due to the ongoing chip shortage.

Murata Manufacturing Co (OTC:MRAAY) Ltd, the top global supplier of ceramic capacitors used in smartphones and cars, said it restarted production on Friday at two stopped plants with the remaining two idled plants to restart next week.

A fire that broke out at a factory which produces chip inductors caused some damage to equipment.

Renesas Electronics Corp, which makes nearly a third of the microcontroller chips used in cars globally, said it has restarted production after stopping it at two factories with a partial stop at a third.

All three factories, including the Naka factory where fire broke out last year, are expected to return to pre-quake capacity by Wednesday, Renesas said.

Power has mostly been restored across the northeast, which suffered Japan's biggest earthquake 11 years ago. Areas of Tokyo lost power for nearly three hours after the latest quake, in which three people died and 183 were injured.

The blackout has forced the disposal of some COVID-19 vaccines held in cool storage, the Yomiuri newspaper reported.

© Reuters. Cracks on a road following a strong earthquake are pictured in Shiroishi, Miyagi prefecture, Japan in this photo taken by Kyodo on March 17, 2022. Mandatory credit Kyodo/via REUTERS

Tech conglomerate Sony (NYSE:SONY) Group Corp is in the process of gradually restarting production at three factories in the quake-hit area, a spokesperson said.

There is some damage to a facility in Shiroishi, Miyagi prefecture which produces laser diodes but the impact on production is limited, Sony said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.