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| Toshiba Electronics' Kaga plant in Ishikawa Prefecture will resume production on some lines on January 10. (Source: Nikkei) |
Consumer electronics group Toshiba, technology components group Murata Manufacturing and other manufacturers affected by the New Year's Day earthquake in central Japan are gradually restoring production, but the impact on supply chains is expected to last for some time.
Toshiba said on January 5 that it will resume partial production on January 10 at its Kaga Toshiba Electronics facility in Nomi, Ishikawa Prefecture, a Toshiba subsidiary that makes semiconductors used in electric vehicles and trains.
“The measures to normalize operations after the earthquake have been effective and we will resume production at some lines,” said Toshiba President Taro Shimada.
Mr. Shimada said the company has yet to grasp the extent of the losses and the extent of delivery delays due to the production disruptions. The group has not yet decided when production will return to normal.
Murata Manufacturing Co.'s three factories in Toyama and Fukui prefectures will resume operations on Jan. 11. Production at Murata's two factories — in Nanao and Anamizu, Ishikawa Prefecture, both near the epicenter of the quake — remains suspended while damage assessments continue.
Japanese semiconductor maker Sanken Electric said on January 5 that one of its plants in Shika, Ishikawa Prefecture, was without power. It is negotiating with the power company to restore service but it may take time to assess the damage.
Japan’s auto industry is expected to resume operations on January 8, after the New Year holidays. However, as one of the companies most affected by the latest earthquake disaster, Toyota Motor will decide as early as January 13 whether it can resume operations.
On January 5, Japanese Minister of Economy, Trade and Industry Ken Saito said that about 80% of the 200 companies with factories and facilities in the earthquake-affected areas have resumed production or will resume production soon. Among them are factories that manufacture machinery, semiconductor equipment and textile products. However, the Japanese government has not been able to provide a specific time frame for restoring power supply to the affected areas.
The economic damage caused by the earthquake could be equivalent to nearly 0.01 percent of Japan's gross domestic product (GDP), according to estimates by Kyohei Morita, chief economist at Japanese financial services firm Nomura Securities.
Manufacturing and production companies in Ishikawa and neighboring Toyama Prefecture form the backbone of the Noto region's economy, according to market research firm Teikoku Databank. The Teikoku Databank study suggests that Ishikawa's tourism and service industries will take longer to recover, as structural and infrastructure damage to many tourist sites will take longer to repair.
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