Production halt in a Chinese manufacturing cluster during the outbreak of COVID-19

The coronavirus outbreak has affected activities in sections of Zhejiang, an eastern province with a thriving industrial sector where many commodities are produced for export.

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Production halts in a Chinese manufacturing cluster during the outbreak of COVID-19

Several enterprises in one of China’s most important manufacturing hubs have halted operations as local officials attempt to manage a COVID-19 outbreak, suspending the production of commodities ranging from batteries to textile dyes and plastics.

The coronavirus outbreak has affected activities in sections of Zhejiang, an eastern province with a thriving industrial sector where many commodities are produced for export.

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At least 20 publicly traded enterprises have ceased operations in Zhejiang, while tens of thousands of individuals have been quarantined, some domestic flights have been suspended, and some athletic events have been canceled.

The outbreak in three Zhejiang cities – Ningbo, Shaoxing, and Hangzhou – was spreading at a “quite rapid” rate, according to health officials over the weekend.

Official statistics indicated on Tuesday that the province recorded 44 locally transmitted cases with verified symptoms on December 13, bringing the total to 217 just over a week after the first case was reported on December 6. Prior to this epidemic, the province has only reported one local case this year.

On Tuesday, Zhejiang Mustang Battery Co Ltd, Guobang Pharma Ltd, and Zhejiang Runtu Co Ltd reported that production had been halted.

Mustang Battery, based in Ningo, said it expected the epidemic to be contained quickly and that the production halt was a temporary measure that “would not have a long-term detrimental impact on the company’s business.” Zhejiang Runtu stated that all of its businesses in the Zhejiang Shangyu Economic Development Zone, which accounts for 95 percent of its income, had been shut down since December 9 and that it expected a negative impact on its fourth-quarter earnings.

They became partners with Ningbo Homelink Eco-Itech Co Ltd, Zhejiang Zhongxin Fluoride Materials Co Ltd, Zhejiang Jingsheng Mechanical & Electrical Co Ltd, and Zhejiang Fenglong Electric Co Ltd.

The companies stated that they ceased operations after local governments in Ningbo and Shaoxing limited all production save critical manufacturing. The instructions apply to all companies in the impacted locations, but only publicly traded companies are required to disclose any impact on their operations.

More than 50,000 people have been confined at centralized facilities across the 64.4-million-person coastal province, while another almost half a million are being watched.

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Production halt in a Chinese manufacturing cluster during the outbreak of COVID-19
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The coronavirus outbreak has affected activities in sections of Zhejiang, an eastern province with a thriving industrial sector where many commodities are produced for export.
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THE POLICY TIMES
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