Published By : 27 Aug 2015 | Published By : QYRESEARCH
Toyota Motor Corp. will again start work at China plants this week after they were shut post the chemical explosions in Tianjin. In an e-mail statement, the automotive firm announced that workers at two lines in the Tianjin Economic Technological Development Area will begin preparation to restart production by Friday. Operations at the Xiqing line will also restart by this week.
Following the blasts at a chemical storage warehouse in the port city Tianjin, around 4,700 vehicles of Toyota and Lexus were damaged. The explosions led to at least 123 deaths and also injured many people. Around 67 employees of the Japanese carmaker staying in the area got injured in the blasts. To ensure the safety of the workers, production at Tianjin FAW Toyota Motor Corp., the local affiliate of Toyota, has been stalled since last two weeks. Tianjin FAW Toyota built around 26,300 vehicles a month through July and last year, accounted for around half of Toyota’s annual vehicle output in China. Toyota is assessing the state of its facilities and would decide about working overtime to recover lost production. Though the carmaker has not revealed an estimated lost output, reports have mentioned that the value of the lost production would be over 660 million yuan per week. Toyota has stated that the sales would not be affected much owing to the certain amount of inventory the company keeps. Toyota’s share prices rose by 3.9% in Tokyo after it was reported that the workers have started returning to the Tianjin plants.
After the Tianjin blasts, the overall auto industry in China has been affected. Around 2,700 Volkswagen AG vehicles have been damaged and a logistics centre of Hyundai Motor Co. near the blast site, has been shut. Fuji Heavy Industries Ltd. has been forced to divert its car shipments to Shanghai.