Ssangyong Motor Halts Operations at Chinese Parts Factory Due to 'Novel Coronavirus'... Concerns Over Production Disruptions

'Wiring' Supply Local Factory to Halt Operations Until the 9th of Next Month

[Asia Economy Reporter Kim Ji-hee] Ssangyong Motor's Pyeongtaek plant is facing the risk of shutdown due to the impact of the novel coronavirus infection (Wuhan pneumonia) in China. This is because a Chinese parts factory supplying wire harness components will suspend operations until February 9 due to the spread of the new coronavirus.

According to the industry on the 30th, the Yantai factory of Leoni Wiring Systems Korea, which manufactures wiring products and supplies them to Ssangyong Motor, will halt operations until February 9.

Earlier, as the novel coronavirus rapidly spread, the Chinese government extended the Lunar New Year holiday by three days until February 2 to prevent the spread, and local governments also successively extended the holiday for companies by an additional week.

Yantai City, where the factory is located, also joined the Chinese government’s measures, resulting in a longer-than-expected production suspension period.

Currently, Ssangyong Motor is reported to have secured only enough wiring stock to use until February 3. If a quick alternative is not found, there will be disruptions in parts supply, forcing the entire Pyeongtaek plant to shut down for about a week starting February 4.

Ssangyong Motor is reviewing various measures, including securing additional quantities through other parts suppliers. The decision on whether to close the plant will be finalized on the 31st.

This content was produced with the assistance of AI translation services.