[Exclusive] 28 Korean Parts Companies in Shandong Province, China Approved for Early Operation... Factories Restart Production
[Asia Economy Reporter Kim Hyewon] Twenty-eight domestic auto parts companies located in Shandong Province, China, have started early factory operations amid the novel coronavirus (Wuhan pneumonia) outbreak. This came after the Chinese side officially approved the selective early operation request made by the government and Hyundai Motor Group to ensure smooth parts supply.
According to related ministries on the 7th, among the 32 Korean auto parts companies located in Shandong Province, 15 companies approved by the governments of Qingdao, Dezhou, Weihai, and Yantai began factory operations from the afternoon of the previous day. A total of 15 companies, including six companies classified as urgency level 1 and level 2, have started early operations.
Additionally, nine more companies are scheduled to start operations from this day, and four companies will be able to run their lines on the 8th. The remaining four companies have not yet undergone effectiveness inspections for quarantine measures, so their operation dates are undecided. As a result, 28 out of 32 Korean companies producing wiring harnesses and other parts in Shandong Province have succeeded in early operations.
The government and Hyundai Motor Group have jointly worked to complete the quarantine system at the wiring harness production plants in China, where domestic parts supply was interrupted, and based on this, to enable early factory operations. On the 1st, Hyundai Kia Motors, in cooperation with the Ministry of Trade, Industry and Energy and the Ministry of Foreign Affairs, sent an official letter through the Chinese Consulate General in Qingdao requesting cooperation in Shandong Province, a key hub for wiring harness production. The letter requested approval to allow production under strict quarantine management at some factories, considering the significant impact on both countries' economies if domestic automobile production were disrupted.
Hyundai Kia Motors emphasized that preventing the spread of coronavirus infection through strengthened quarantine measures is their top priority. It is evaluated that supporting partner companies to establish thorough quarantine systems was crucial, as securing the safety of partner company employees is most important. Hyundai Kia Motors, together with wiring harness parts suppliers, is fully committed to workplace quarantine and employee safety, including disinfection within workplaces, installation of thermal imaging cameras, individual supply of masks, placement of thermometers and sanitizers in workplaces, and measuring the temperature of all workers twice a day. Executives of Hyundai Motor Group China (HMGC) also directly communicated with Shandong government officials to discuss plans for resuming production.
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The Chinese Consulate General in Qingdao met with Shandong government officials to explain the necessity of early factory operations and discuss the required measures for operation. Through the Commercial Counselor of the Chinese Embassy in Korea and the Shandong Korean Representative Office, close consultations have been held with city governments where wiring harness factories are located in Shandong Province to resume factory operations.
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