Komatsu and Nissan halt production at affected plants

News Story
- 24 Mar 2011 ( #506 ) - Tokyo, Japan
3 min read
Japanese forklift companies are resuming production in some plants while others remained shut after being affected by the devastating earthquake and subsequent tsunami two weeks ago.

Komatsu Group says while it has confirmed the safety of all of its employees, some of its staff are unsure about the safety of their family members and relatives. The group says it has made it a priority to help these employees seek out their missing loved ones.

"We are supporting affected employees to rebuild the foundation of their daily living while starting assistance (in) reconstruction of the affected areas," the company says in a statement.

Komatsu says it will take "some time" for the resumption of normal levels of operation for its sales, service and other operations in the Tohoku region that were damaged by the tsunami.

Six of Komatsu's Japanese plants are affected. Production has stopped at Komatsu's Oyama, Ibaraki and Koriyaya plants and some production lines have been shut at the Awazu and Osaka plants. Komatsu Utility Co Ltd in Oyama City, which produces forklifts, has resumed production.

The group says it is making progress in repairing its plants in the affected areas and supporting its suppliers which have been adversely affected by the disaster. However, Komatsu anticipates some difficulty in parts procurement for the coming weeks.

The Oyama plant in Oyama City, Tochigi prefecture, will soon resume partial production as repairs and inspection of damaged facilities are about to finish, while the Ibaraki plant in Hitachinaka City, Ibaraki prefecture, will close indefinitely due to damaged roads and port facilities. At the Koriyaya plant in Koriyama City, Fukushima prefecture, production facilities are ready to resume but employees face gasoline shortages and can't get to work. Meanwhile, the Oyama, Awazu, Osaka and Komatsu Utility Co Ltd plants are experiencing difficulties in procuring parts.

"Although we are projecting that our production will be affected by factors like future power supply in affected areas, (possible) aftershocks and the nuclear plant problem in Fukushima, we are making group-wide efforts for full recovery of our operations," the group says.

"While we are going to record unexpected expenses related to these recovery efforts, we are projecting that these expenses will have only a small impact on our business results [for the current fiscal year ending 31 March]."

Komatsu, which already pledged JPY300 million (USD3.7 million) worth of equipment and other assistance for the recovery efforts, has offered another JPY500 million (USD6.2 million) of aid.
"Conditions of the affected areas are deteriorating day by day and it is projected that reconstruction will take a long time. We are anticipating that we will continue to receive requests for equipment from the municipal governments."

Nissan Forklift spokesman Yuasa Katsutoshi tells Forkliftaction.com News that all of the Yokohama-headquartered company's employees and their families are safe, but some of its dealerships in the northern part of Japan were severely damaged. The facilities of suppliers located in the disaster area are also damaged.

Nissan Forklift stopped production at its Takada factory at the end of last week and Katsutoshi says there is "no concrete plan" to resume production at the facility. The Takada plant mainly services Nissan's Asian and Australian customers.

Katsutoshi explains that the factory was not damaged but production could not continue because of the damage suffered by it suppliers, the limited supply of electricity to Takada and its suppliers, and the logistic problems caused by the damage to many main roads.

The company says it plans to offer free rental forklifts and will dispatch personnel to the disaster areas in conjunction with its parent, Nissan Motor Co Ltd. In addition to an initial JPY30 million (USD370,673) donated to relief efforts, Nissan Motor is donating over JPY400 million (USD4.9 million) in cash and in-kind contribution to the relief efforts. This includes corporate donations, employee gift matching and the provision of 50 vehicles to support aid agencies. Nissan Motor's Oppama, Tochigi, Kyushu and Yokohama plants resumed limited operations on Monday. The Iwaki engine plant is still being repaired and its employees are encouraged to assist with local volunteer relief efforts.
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