Sony Suspends Operations in Five Plants Due to Shortages
March 22, 2011
TOKYO: Sony today said it
had to halt operations temporarily at five sites not directly affected by the
March 11 earthquake and tsunami, due to raw material shortages. The company
provided an update of its operations across Japan.
“At this time, Sony will endeavor to maintain supplies of the listed products
in the market through reliance on existing inventory, to the extent available,”
the company said. “While Sony is making every effort to resume normal
operations at these sites, in the event shortages of necessary raw materials
and components at these sites will continue, the company is considering
alternatives, including possibly temporarily shifting certain manufacturing
A shortage of raw materials is affecting operations for Sony sites in Shizuoka,
Aichi, Gifu, and Oita Prefectures. The Tokai Technology Center Kosai Site in
Shizuoka makes broadcast and professional equipment. The Centers in Aichi make
camcorders, digital still cameras and LCD TVs. The Gifu site makes lenses for
DSLRs and cell phones, among other items. The Oita site makes microphones and
headphones. Manufacturing at these plants has been suspended through March 31,
depending on the availability of materials.
As of March 22, 10 a.m. JST, Sony had confirmed the safety of all of its
employees and those employed by its group companies in the region affected by
the earthquake and tsunami.
Operations that remain suspended due to damage and power outages include the
Sony Chemical & Information Device Corp. plants in Miyagi Prefecture, where
the tsunami hit the coastline. The Shiroishi Semiconductor plant in Miyagi
remains down, and two lithium ion battery plants in Fukushima, where a nuclear
reactor is leaking, remain closed. The Sony DADC Japan in Ibaraki Prefecture,
where CDs and DVDs are made, remains closed.
Intermittent operations have resumed at the Kisarazu Technology Center in Chiba
Prefecture, where Blu-ray recorders and home audio products are made. Sony said
the plant had no direct damage but had suspended operations due primarily to
power outages, and may have to do so again.
Sony said all other manufacturing sties in Japan were operating normally thus
far, though it will continue to monitor the available ability of raw materials
and components. The company is continuing to evaluate the full impact of the
earthquake, tsunami and power outages on its businesses and consolidated
Shares of Sony climbed around 3 percent on the Tokyo Stock Exchange today,
closing at 2,600 yen (US32.10). American Deposit Receipts also are on the
rebound, trading at $32.27 today after plunging below $30 right after the
SmarTrend today said analyst
expect Sony to turn a profit this year, after posting a loss of $40.66 a share
for the last fiscal year. The company is expected to post a profit this year of
$123.67 a share. Sony’s fiscal year ends March 31. 2011.
-- Deborah D. McAdams