Japan's Earthquake Likely to Worsen Automotive, Electronics Supply

Researched by Industrial Info Resources (Sugar Land, Texas)--At least two people are dead and more than 160 are injured following a powerful earthquake early Thursday, off Japan's northeast coast. One of the areas affected was the Fukushima prefecture, which is home to several automotive, semiconductor-manufacturing and nuclear-power facilities, including the now-disabled Fukushima Daiichi plant that was the site of a meltdown following a massive earthquake and tsunami in 2011. Japanese authorities say no abnormalities were reported at any of the area's nuclear units following Thursday's quake.

The earthquake, which registered a magnitude of 7.4, started shortly before midnight on Wednesday night, just east of the Fukushima prefecture, which is about 180 miles north of Tokyo. It cut power and water to thousands of homes and forced numerous factories to suspend operations in Fukushima and the neighboring Iwate, Miyagi and Yamagata prefectures.

Click on the image at right for a graph from Industrial Info's Disaster Impact Tracker tool detailing the industrial effects of Japan's latest earthquake.

Japan's biggest refiner, ENEOS Corporation (Tokyo), shut down its 145,000-barrel-per-day (BBL/d) Sendai Refinery in Sendai, Miyagi. Affected units include the lone crude, 30,000-BBL/d reformer and 43,000-BBL/d residual fluid catalytic cracking (RFCC) units. Inspections could take weeks and the outage could take until April 4, according to the company; however, no final decision has been made at this time. Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can find more details about the facility in Industrial Info's plant profile.

ENEOS also was forced to shut down its 247,000-BBL/d refinery in Kawasaki, including the 170,000-BBL/d Crude 2 and 34,500-BBL/d Heavy Oil Hydrocracking units, among others. The company said the outage could last until April 2, but no final decision has been made. However, the facility's 77,000-BBL/d Crude 3 Unit, 92,000-BBL/d fluid catalytic cracking unit, 22,000-BBL/d Reformer 2 Unit and 34,000-BBL/d Reformer 3 Unit remain operational. Kawasaki is located in the Kanagawa prefecture, which is part of the Greater Tokyo Area. Subscribers can find more details about the facility in Industrial Info's plant profile.

Power outages forced a shutdown at Osaka International Refining Company Limited's (Osaka, Japan) 129,000-BBL/d Chiba Refinery in Ichihara, Chiba, including the lone crude unit, 28,000-BBL/d Reformer Unit and 34,000-BBL/d RFCC Unit. Expectations are to restart the units by March 26; however, no final decision has been made at this time. Subscribers can find more details about the facility in Industrial Info's plant profile.

More Woes Likely for Automotive, Semiconductor Markets
Renesas Electronics Corporation (Tokyo), a major supplier of automotive chips, suspended production at two semiconductor plants and partially stopped output at a third, according to Reuters. The global automotive industry already is reeling from supply-chain crunches that have constrained the supply of semiconductor chips necessary for today's vehicles, and long-term shutdowns at these facilities would only worsen the industry's outlook.

All three affected Renesas facilities are in and around Fukushima. Renesas said it had partially resumed production at its Yonezawa plant, but the company could not say when production might resume at its Hitachinaka (Naka) and Takasaki plants. Renesas' Naka and Yonezawa plants make microcontrollers for automotive and industrial use, according to Automotive News Europe. The Takasaki plant makes chips used to convert AC-DC electrical currents. Subscribers can read detailed profiles of the Yonezawa, Hitachinaka (Naka) and Takasaki plants, and click here for a full list of Renesas plants across Japan.

Murata Manufacturing Company Limited (Kyoto, Japan), which produces smartphone parts, also halted operations at several of its factories, including one that experienced a fire in the hours after the earthquake. According to a company press release, affected facilities included subsidiary Tohoku Murata Manufacturing's Koriyama Plant and Motomiya Plant in the Fukushima prefecture, both of which manufacture lithium-ion batteries for electric vehicles. The company says at least some production at these facilities is expected to resume by tomorrow. Subscribers can read detailed profiles of the Koriyama and Motomiya plants.

Sony Group (NYSE:SONY) (Tokyo) halted production at its Shiroishi-Zao Technology Center in Shiroishi-shi, Miyagi, and its Yamagata Technology Center in Tsuruoka-shi, Yamagata, although the company "confirmed the safety of all employees and no significant damage to the buildings, as well as facilities." Both facilities manufacture semiconductor chips and other parts for electronic devices. Subscribers can read detailed profiles of the Shiroishi-Zao and Yamagata plants.

Toyota Motor Corporation (NYSE:TM) (Toyota City, Japan) suspended work at its production plants in the Iwate and Miyagi prefectures late Wednesday and resumed in a limited capacity late Thursday, according to a company spokesperson. Toyota's factories in the area include:

• an automotive parts facility in Hiraizumi, Iwate; see plant profile
• a vehicle assembly facility in Kanegasaki, Iwate; see plant profile
• a vehicle assembly facility in Ohira, Miyagi; see plant profile
• an automotive battery facility in Taiwa, Miyagi; see plant profile
• an engine and automotive parts facility in Taiwa, Miyagi; see plant profile

Nissan Motor Corporation (Yokohama, Japan) halted production at its automotive engine plant in Iwaki, Fukushima, which already had been scheduled to close Thursday and Friday as part of Nissan's employee vaccination schedule, according to Bloomberg. A Nissan spokesperson said all of its employees have been safely evacuated and there was no damage impacting production or injuries reported at its Iwaki facility, according to Bloomberg. Subscribers can find more details about the facility in Industrial Info's plant profile.

Hitachi Astemo Limited (Tokyo) temporarily halted production at its factories in the area while inspections are carried out, a spokesman told Bloomberg. The auto-parts maker was unable to say when production would resume. Subscribers can click here for a list of Hitachi facilities in the affected areas.

Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.