JAKARTA - A magnitude 7.1 earthquake in Kumamoto Prefecture has begun to suppress Japanese industrial activity. A number of chip, automotive, chemical, beverage, and logistics service factories have stopped operations after the earthquake shook Japan's southwest region.
Kyodo News, quoted Thursday, July 30, reported that the plant closure was widespread on Wednesday, a day after the earthquake occurred. Concerns have emerged that the suspension of operations could have a greater economic impact if it lasts long.
The semiconductor sector is one of the most highlighted. Semiconductors or chips are essential components for electronic devices, cars, factory machines, and digital equipment.
Sony Semiconductor Manufacturing Corp., a subsidiary of Sony Group Corp., immediately halted operations at its Kikuyo plant after the quake. The company has not set a date for production to resume.
Similar steps were taken by Renesas Electronics Corp. and Tokyo Electron Ltd. The two major chip companies suspended operations at two plants each in Kumamoto Prefecture.
Mitsubishi Electric Corp. also suspended operations at its plants in Koshi and Kikuchi.
The impact of the earthquake did not stop in the chip sector. Toyota Motor Kyushu Inc. had to restart its three factories in Fukuoka Prefecture after safety checks. However, operations were suspended again from Wednesday evening to Friday evening.
Toyota has stopped production again due to logistical problems and conditions at suppliers. The disruption shows that the problem of shipping goods and component supplies determines whether the factory will run quickly or slowly.
Honda Motor Co. halted operations at its motorcycle and engine plants in Ozu City until Friday.
Nissan Motor Co. will also halt some operations at two plants in Fukuoka Prefecture from Thursday afternoon due to late parts supplies.
Plant closures have also occurred in other sectors. Suntory Holdings Ltd.'s beer plant in Kashima and Mitsubishi Chemical Corp.'s plant in Uto are still not operating.
Nippon Paper Industries Co. said it was still checking all levels of damage at the Yatsushiro Plant. One of the smokestacks at the facility was severely damaged. The company has not determined when production can resume.
The Kumamoto earthquake also disrupted logistics services. Japan Post Co. suspended services at post offices across the prefecture.
Yamato Transport Co. stopped handling packages. Meanwhile, Sagawa Express Co. temporarily suspended package pick-up and delivery services in some areas.
Kyodo News said concerns about wider economic impacts emerged if the shutdown lasted long.
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