Many companies in Shanghai seek to resume production
Heavy industry machinery and equipment manufacturer SANY currently has 2,100 workers working and living on site in Lam Cang industrial park, in order to meet export orders. However, the company is having difficulty in finding raw materials, so it cannot operate at full capacity.
The same situation also happened with the Gigafactory of the American electric car company Tesla in Shanghai. The company’s 8,000 workers have been mobilized to resume battery and motor production lines, while the assembly department needs more time.
“We will gradually increase our operations in the next three or four days until we reach full capacity. It must be confirmed that quite a few component suppliers have resumed production in Shanghai,” said Mr. Song Gang, Manager. Tesla Shanghai factory manager, said.
Employees work at Tesla’s Gigafactory in Shanghai. (Photo: Xinhua)
To ensure safety, workers at factories in Shanghai will have to perform a rapid COVID-19 test every morning and an additional PCR test in the evening. Automotive and heavy machinery are on the list of key industries prioritized to resume operations in Shanghai.
“We have talked to nearly 400 suppliers and have quite a good understanding of the raw material reserves and the speed of these suppliers’ recovery. We are also in contact with the local authorities to get permits to travel on intercity green roads as soon as possible,” said Chen Peifeng, director of the assembly plant in Shanghai, SAIC.
The resumption of production in Shanghai may help alleviate some of the economic damage from the prolonged lockdown. In 2021, the city of Shanghai contributed up to 3.5% of China’s GDP.
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