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Friday, February 7, 2025
Home6 W’sWhy much of 'the world's factory' still shut?

Why much of ‘the world’s factory’ still shut?

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Daily US Times: A large number of Chinese factories in the mainland remain closed today even millions of people joined their work after extended Lunar New Year holiday ended. As many factories are still shut, it started to impact China’s economy and global chain.

Big carmakers companies are now facing shortage of parts. If the disruption continues, the supplies of Apple products will be uncertain.

Chinese governments ordered the factories across the country to keep closed after the annual holiday as part of attempts by authorities to stem the spread of the virus.

That restriction are withdrawn for many companies but several major manufacturers remain closed.

One of Apple’s major suppliers, Foxconn, has yet to reopen its largest Chinese factory. Shenzhen’s Longhua district, where the plant is located, has said production would restart as soon as officials have completed inspections at the facility.

A spokesman for the company said, “Our teams in each of our facilities in China are working closely with the respective local government agencies and we are continuing to do that as we implement our post-holiday production schedules.”

Last week the company was pushing to gain approval to open its factories. The company even promised that thousands of workers at its factories would wear surgical masks to prevent infection and undergo regular temperature checks. Several major carmakers are also among the manufacturers that have extended the shutdowns of their operations.

Nissan and PSA, which makes the Peugeot and Citroen brands, have said their factories will remain closed until Friday. Other automaker companies like VW, BMW, Toyota, and Honda have all said they now plan to restart Chinese production next week.

What is the global Impact?

As a result of many major Chinese factories are still shut, it started to impact globally. Giant car maker companies like Honda, General Motors, and Dongfeng Motor all have factories in the Hubei region, where the Coronavirus outbreak is believed to have started.

One of Honda’s two Chinese joint venture manufacturing plants is in Wuhan, Hubei’s capital.

Last week, Hyundai halt production outside China because of a shortage of parts caused by the coronavirus. It is the first major car company bound to face the situation.

Fiat Chrysler also warned that it may have to suspend production in Europe if the disruption of production in China continues.

You may like: Coronavirus: Deadliest day so far killed 97 people in China

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