Emergency Operation at iPhone Factory Due to Heavy Rain in Henan Province, China... Supply Chain Damage Expands

Major Factories in Zhengzhou, Henan Province Halt or Operate in Emergency Mode
Foxconn, Nissan, SAIC and Others Affected
China's Food Supply Chain Also Likely Impacted... "Wheat Imports May Rise by 40%"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] Zhengzhou, the capital city of Henan Province in central China, which is known as the 'iPhone City' and home to large-scale iPhone contract manufacturing plants, has suffered severe damage due to heavy rains over the past three days. Concerns are rising that the manufacturing supply chain will face significant disruption as Zhengzhou's iPhone production plants enter emergency operation mode.

According to Bloomberg on the 21st, the heavy rains in Henan Province have caused flooding in Zhengzhou, the provincial capital, leading to the suspension or emergency operation of major manufacturing plants located in the city.

In particular, since about 90 major listed companies in China are located in Zhengzhou, there are worries that prolonged flood damage could have a substantial impact on the Chinese economy.

For example, a company official stated that Foxconn's Zhengzhou plant, which manufactures Apple iPhones under contract, is implementing an emergency response plan.

However, the company said the plant has not suffered direct damage from the heavy rains and is expected to continue operating.

Foxconn's Zhengzhou iPhone plant assembles components received from around the world to manufacture finished products.

Bloomberg reported that the heavy rains could disrupt Foxconn's plans to increase iPhone production ahead of the scheduled release of new iPhone models at the end of this year.

[Image source=Reuters Yonhap News]

Additionally, Nissan's factory is reported to be temporarily suspended.

Furthermore, a company official from Shanghai Automotive Industry Corporation (SAIC), China's largest automobile manufacturer, said that logistics and trade around the Zhengzhou plant are being affected by the heavy rains, causing difficulties in delivering finished vehicles.

Concerns are also spreading about significant damage to Henan Province's food supply chain.

Henan is the second-largest grain-producing region in China. It produces 25% of all wheat in the country. Moreover, Henan is home to a factory of WH Group, the world's largest pork producer.

According to a Chinese consulting firm, the heavy rains have damaged wheat production, and China's wheat imports could increase by about 40% within this year. This would be the largest increase since the mid-1990s.

[Image source=AP Yonhap News]

Earlier, more than 617mm of heavy rain fell over three days from the night of the 17th to the previous night in central Henan areas including Zhengzhou and Luoyang. This amount exceeds the total rainfall in Henan Province for the entire last year.

Henan meteorological authorities stated that this is the largest rainfall in 60 years since 1951 based on hourly and single average measurements. As a result, flooding occurred in many parts of Zhengzhou city, with road inundations, suspension of all train and subway lines, and control of national and expressway traffic. Floodwaters inundated underground stations, resulting in 12 residents reported dead.

Luoyang's Yihatan Dam, a major dam in Henan Province, is also at risk of collapse, putting approximately 94 million residents of Henan in great danger. The Chinese People's Liberation Army warned that a 20-meter-long crack has formed in the dam, which could collapse at any time, urging residents to evacuate promptly.

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