Over 300 Taiwan firms suspending China factory reopening on spreading coronavirus

12, Feb. 2020

Photo by Carlos Daniel on Unsplash
Photo by Carlos Daniel on Unsplash

TAIPEI, NNA – Over 300 Taiwanese firms are still suspending the reopening of their plants across mainland China amid the spreading coronavirus, as they have yet to gain approval for the resumption of operations from some local governments, while also facing shortfalls in the number of workers able to return to the factories.

NNA confirmed that at least 301 of some 1,700 Taiwan listed firms, including those in emerging markets, announced they had not restarted production by Tuesday, mainly in regions with industrial clusters such as Shanghai, as well as Jiangsu and Zhejiang provinces.

Companies are refraining from reopening factories even after Feb. 9, the day until which local authorities in China had ordered them to delay their business activities.

Z-Com Inc., a wireless networking device maker, has delayed reopening its core Chinese subsidiary in the central province of Jiangxi as some of its employees were not able to return to work due to travel restrictions imposed by local governments, it said in a statement on Monday.

E&R Engineering Corp., a manufacturer of factory automation equipment for chip making, also said Monday it gave up restarting operations at a production subsidiary in Wuxi, Jiangsu Province as it has not gained approval for the resumption from local authorities.

Major global electronics contract manufacturers, such as Pegatron Corp., Quanta Computer Inc. and New Kinpo Group, partially reopened some factories in China on Monday while following instructions from local governments, according to a report in Taiwan’s Economic Times.

Foxconn Electronics Inc., the world’s largest electronics contractor, also got approval for resumption at its two major mainland factories in Shenzhen and the central Chinese city of Zhengzhou, according to Reuters, citing a person with direct knowledge of the matter.