Wuhan, China to Resume Factory Operations from the 11th... "Normal Operations Uncertain..."

[Asia Economy Reporter Naju-seok] Automotive-related companies in Wuhan, known as the Detroit of China, are resuming operations. Wuhan, the epicenter of the novel coronavirus infection (COVID-19), had been under lockdown with restricted access as part of quarantine measures.

According to major foreign media on the 9th, Wuhan city has decided to resume operations at factories within the city starting from the 11th. However, due to the prolonged closure of factories, securing raw materials is difficult, and it is uncertain whether enough employees have returned to enable normal operations.

[Image source=Reuters Yonhap News]

Companies are primarily concerned about the health status of their employees. An employee of Honda Motor said, "In some cities, if even one employee is infected, the entire factory must shut down." The official added, "This aspect is unclear in Wuhan," and said, "It is difficult to manage such large-scale factories while dealing with this uncertainty."

Wuhan produces 10% of China's manufactured automobiles and serves as a procurement hub for parts for global automobile manufacturers.

The Hubei province area, including Wuhan, which was placed under lockdown, is in a critical state. According to surveys by Wuhan University and others, among 573 companies related to automobiles, 97% have suspended operations or partially suspended operations. Among them, 60% warn that if operations do not resume within the next three months, they may face bankruptcy.

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