Japan disaster affects Brazil industry

Tokyo, April 01: At least 36 Japanese subsidiaries located in the so-called Free Trade Zone of Manaus, Brazil, have been adversely impacted by Japan’s mega quake and tsunami.

Well-known Japanese manufacturers in Manaus will most likely face production disruptions as they only have enough inventory to last between 60 to 90 days, a Media correspondent reported.

“Production will be stopped in June if Japanese subsidiaries do not receive their parts from the headquarters,” Project Coordinator of Manaus’ Free Trade Zone Gustavo Igrejas told Press TV.

The companies, located in the heart of the Amazon, import huge quantities of motorbike parts, engines, electronic devices, integrated circuits and machines from Japan. Honda motorcycles, Yamaha, Sony and Panasonic, which employ approximately 20,000 people in the Amazon, are dependent on parts manufactured in Japan.

Many plants in Japan have been closed since March 11 when the country’s east coast was rocked by the natural disasters. Further, entire cargoes awaiting shipment were destroyed together with the ports.

Most plants closed in Japan are expected to resume normal operations only in May. A growing concern also exists regarding energy supply in the country in view of the ongoing nuclear catastrophe.

All over the world, manufacturers are slowing down assembly lines and shortening shifts at plants. Some have chosen to operate for fewer hours each day so that parts supplies will last longer.