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News

Japan earthquake hits China supply chains

30 March 2011
More parts shortages in China are being experienced following the Japanese earthquake on 11 March.

Xianfang Ren, Senior China Economist for the consultants IHS Global Insight, was reported by IFW as saying that supply chain disruption was causing semi-shutdowns of some manufacturers that rely on components from Japan.

Dongfeng-Nissan Auto’s facility in Hubei province is currently running at just one-third of normal capacity, while a number of companies in Jiangsu province have reported 8-10 week delays in component delivery from Japan and some have partially closed.

“Expectations for tighter supply have already driven up prices for IT and electronics products in many local markets in China,” said the analyst.

Theo Leuthardt, Global Head Supply Chain Solutions at Panalpina, said that apart from the aerospace, auto and electronics industries, other sectors such as a fashion and food had also been affected. However, he said the outlook was starting to improve for some major car manufacturers.

     
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