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Kyushu Quakes Trouble Japan's Economy

Kyushu Quakes Trouble Japan's Economy

Enterprise & IT Apr 17,2016 0

Two earthquakes and a series of aftershocks in the Kumamoto region on the island of Kyushu in southern Japan have forced technlogy companies including Sony and Toyota to suspend factory operations in the area. Even problems in air, road and rail services are causing a wider disruption to the country's already sluggish economy.

The quakes and aftershocks have halted parts deliveries, forcing even factories left untouched to suspend operations, at least for the coming week.

The lack of transportation has already begun affecting the region's manufacturing activities. Kyushu accounts for more than 10% of the country's car production. Toyota Motor makes its Lexus cars in Fukuoka Prefecture. Its Kyushu factory was forced to suspend operations on Saturday when parts failed to arrive.

Mitsubishi Motors, meanwhile, has decided it will halt production at its Mizushima Plant, in Okayama Prefecture, not far from Kyushu. The suspension will begin on Monday night and run through Tuesday.

Sony on Thursday suspended operations at a semiconductor plant in Kikuyo, Kumamoto Prefecture. The factory, a major hub, makes image sensors that go into cameras and smartphones. Operations at Sony's image sensor plants in Nagasaki and Oita, also on the southern Japanese island of Kyushu, fully resumed, the company said.

Renesas Electronics' Kawashiri Factory, in Kumamoto, also has been shut since Thursday.

Honda Motor has also decided it will suspend operations on Monday.

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