2 quakes disrupt Japanese economy

Associated Press

TOKYO

The twin earthquakes that struck southern Japan were having ripple effects far beyond the disaster zone, forcing Toyota to suspend production at most of its factories across the country, and affecting other manufacturers as well.

The quake damaged Honda’s motorcycle plant in Kumamoto, the largest city affected by the two quakes that hit late Thursday and early Saturday, killing at least 42 people. Japan’s Nikkei 225 stock index tumbled more than 3 percent Monday in part on worries over quake repercussions as well as a spike in the yen and a drop in oil prices.

But the economic impact is nowhere near as large as the havoc wreaked by the 2011 quake and tsunami disasters, which slammed supply chains so badly that Japanese automakers’ production was halted even in the U.S. They learned the hard way about their vulnerability to such interruptions, especially from second- and third-tier suppliers, and have worked to create contingency plans.

Disasters tend to hobble Japan’s mighty manufacturers because they are supported by small machine shops that provide components to bigger suppliers, which in turn supply bigger players.

“That kind of lesson has been learned,” said Nissan Motor Co. spokesman Dion Corbett. “We now have maps that show where exactly the suppliers are.”

Nissan’s two plants in Kyushu were temporarily shut down after the quakes for checkups. The checks found damage was minor, allowing the plants to resume operations Monday, Corbett said.

Some of the worst-affected areas are deep in the mountains surrounding Mount Aso, Japan’s largest active volcano, an area renowned for dairy farming. But one of the hardest-hit cities was Mashiki, a center for semiconductor fabrication and other manufacturing.

Sony Corp. said its sensor and device plant in Kumamoto was closed. Although the building’s structure was intact and no employees were injured, the precise nature of the production processes requires that delicately calibrated equipment must be checked carefully.