Automotive Parts Manufacturer Bosch to Close Two Factories in China

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Hyunjung] German automotive parts manufacturer Bosch announced it will close two manufacturing plants in China, Bloomberg reported on the 11th (local time).

The report cited a statement from Bosch on the same day, saying the company has halted production at two plants in China and implemented a closed-loop system at two other plants due to the impact of COVID-19 prevention measures.

The two closed plants are a home water heating technology plant located in Shanghai and an automotive parts plant in Jilin Province. Additionally, Bosch's automotive parts plants in Shanghai and Taicang are operating under the closed-loop system, where workers either remain on-site to avoid virus exposure or use separate transportation facilities to commute between safe accommodations and the workplace.

Bosch is considered a representative company affected by China's zero-COVID policy. Previously, Shanghai imposed strict movement restrictions on most of its 25 million residents, and the northeastern Jilin Province was locked down for over a month.

In its statement, Bosch said, "There is currently a temporary impact on logistics and supply chains," adding, "In this situation, we are doing our best to maintain the supply chain and meet customer demands."

Automakers including Tesla and Volkswagen had to halt production at their plants in Shanghai this month. Chinese electric vehicle startup Nio announced last weekend that it stopped production and delayed deliveries due to supplier operational shutdowns.

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