https://asia.nikkei.com/Spotlight/S...=1&pub_date=20220818123000&seq_num=2&si=44594
Chongqing Changan Automobile is one of the factories suspending production until Aug. 24 to comply with government orders.
SHUNSUKE TABETA, Nikkei staff writerAugust 17, 2022 20:37 JST
CHONGQING -- The Chongqing municipal government has ordered factories, including Japanese-owned ones, to suspend operations until Aug. 24 to conserve energy after an exceptionally hot spell led to a surge in electricity demand.
Following in the footsteps of neighboring Sichuan Province, Chongqing is controlling power usage in the Liangjiang area, and others, after extreme heat led to a huge increase in the use of fans and air conditioners. Chongqing has a high number of factories that make automobiles and computers, and their shutdown could have an impact on supplies domestically and internationally. Shopping centers, including foreign-owned ones, will also shorten operating hours.
Previously, the government had only required that factories cease production during consumption peaks, but the tight power supply-demand situation has become so severe that shutdowns were deemed necessary. Local authorities said that many areas in Chongqing have been experiencing high temperatures of over 40 C.
Chongqing is home to many auto manufacturers, including state-owned Chongqing Changan Automobile and U.S.-based Ford Motor. BYD also has its battery plant there, as well as Taiwanese electronics manufacturers that produce equipment for U.S. tech companies.
Many Japanese companies have also moved into the area, with Isuzu Motors and Honda as well as auto parts manufacturers setting up plants there.
Meanwhile, Sichuan Province, which has procured much of its power in the past, is also experiencing a serious power shortage.
Authorities there had ordered most factories to halt production until Aug. 20. This includes the production facilities of Hon Hai Precision Industry, which is a key Apple supplier, and Toyota Motor's factory. According to Chinese media, power shortages are also occurring in Zhejiang and Jiangsu provinces.
Chongqing orders factories to shut to save power during heat wave
Surge in electricity demand forces Chinese city to rein in usage
Chongqing Changan Automobile is one of the factories suspending production until Aug. 24 to comply with government orders.
SHUNSUKE TABETA, Nikkei staff writerAugust 17, 2022 20:37 JST
CHONGQING -- The Chongqing municipal government has ordered factories, including Japanese-owned ones, to suspend operations until Aug. 24 to conserve energy after an exceptionally hot spell led to a surge in electricity demand.
Following in the footsteps of neighboring Sichuan Province, Chongqing is controlling power usage in the Liangjiang area, and others, after extreme heat led to a huge increase in the use of fans and air conditioners. Chongqing has a high number of factories that make automobiles and computers, and their shutdown could have an impact on supplies domestically and internationally. Shopping centers, including foreign-owned ones, will also shorten operating hours.
Previously, the government had only required that factories cease production during consumption peaks, but the tight power supply-demand situation has become so severe that shutdowns were deemed necessary. Local authorities said that many areas in Chongqing have been experiencing high temperatures of over 40 C.
Chongqing is home to many auto manufacturers, including state-owned Chongqing Changan Automobile and U.S.-based Ford Motor. BYD also has its battery plant there, as well as Taiwanese electronics manufacturers that produce equipment for U.S. tech companies.
Many Japanese companies have also moved into the area, with Isuzu Motors and Honda as well as auto parts manufacturers setting up plants there.
Meanwhile, Sichuan Province, which has procured much of its power in the past, is also experiencing a serious power shortage.
Authorities there had ordered most factories to halt production until Aug. 20. This includes the production facilities of Hon Hai Precision Industry, which is a key Apple supplier, and Toyota Motor's factory. According to Chinese media, power shortages are also occurring in Zhejiang and Jiangsu provinces.
