Rolling Blackouts Mark Japanese Firms’ Quake Recovery Efforts

Rolling, controlled blackouts appeared Monday to be complicating recovery efforts of Japanese firms trying to assess the damage from Friday’s killer quake and tsunami (CED March 14 p1), said statements from several companies. Still, many said they voluntarily had shut facilities, even those undamaged in the disaster, to cope with ongoing power shortages. All said they're still uncertain what impact the disaster might have on financial performance for the quarter ending March 31, which for most Japanese firms close out their fiscal years.

Sony added its Sony Manufacturing Systems Corp. plant in Kuki, which makes surface mounting equipment for semiconductors, and DVD replicator Sony DADC Japan in Ibaraki to its list of factories that had ceased operations during damage assessment, the company said. At all its factories, especially those in the hardest hit Miyagi and Fukushima prefectures, Sony “is monitoring the status of each of these sites on an on-going basis, while also considering the most effective recovery measures,” it said. “No significant injuries have been reported to employees working at any of these sites when the earthquake or tsunami occurred."

Operations continue at other Sony facilities far away from the hardest hit regions, the company said. However, Sony has “temporarily suspended operations on a voluntary basis” at three such facilities “to assist with the alleviation of widespread power outages,” it said. Those are the Sony Chemical and Information Devices and Sony Energy Devices facilities in Tochigi and the Sony Technology Center in Atsugi, it said.

Hitachi’s buildings and production facilities “have suffered damages, mainly at production bases in Ibaraki prefecture,” the company said. “The company will make the safety of its employees the first priority, and will continue to gather details on the status of damages to production facilities, while closely monitoring conditions of utilities such as the availability of electric power.” Hitachi also has established an “emergency headquarters” at its Tokyo head office, it said. The center “will manage activities aimed at providing support to affected regions and customers,” gather information on employees’ personal and property losses and investigate and implement “appropriate countermeasures,” it said.

Sharp, which like others had maintained its silence Friday as it assessed the disaster’s repercussions, released a statement Monday reporting that “there are no extensive damages to our buildings or production facilities in Japan.” Undamaged facilities included Sharp’s LCD TV assembly plant in Yaita, only about 130 miles from hard-hit Sendai, the company said. Its two LCD panel plants near Osaka “are continuing normal operation,” it said.

Toshiba, like others, will cooperate with Tokyo Electric Power Co.’s (TEPCO) request to cut electricity consumption by “operating only those of its businesses related to provision of essential services required for social and economic activities,” the company said. “This decision extends to Toshiba Group companies and covers production facilities and business premises in areas where TEPCO plans controlled power outages.” In line with this decision, Toshiba closed all of its premises in those areas with power outages, other than its headquarters and those business operations related to essential services.

D&M reopened its Kawasaki office Monday, said a statement from Bob Weissberg, D&M Holdings North American president. Kawasaki is in Kanagawa prefecture, between Tokyo and Yokohama, about 200 miles south of Sendai. “While the building sustained some damage, repairs are currently under way and we expect operations to approach relatively normal levels within the next couple of days,” Weissberg said. D&M’s plant in Shirakawa, in hard-hit Fukushima prefecture, “sustained some damage,” and so will remain closed through Wednesday, Weissberg said. “During this time we will obtain a more complete picture of the damage, put response plans in place and have physical inspections conducted to verify the facility can be re-opened safely. The Shirakawa area is experiencing significant infrastructure challenges, including the shutdown of major highways, bullet train service, water supply and potential power disruptions."

At least four companies stepped forward Monday pledging cash and equipment donations to help quake and tsunami victims. Sony said its group companies will donate 300 million yen ($3.6 million) to help relief and recovery efforts in affected communities. The company will also initiate a disaster relief fund across the Sony group to collect donations from employees worldwide, and Sony will match their contributions, it said. The company will also donate 30,000 Sony radios to victims and will prepare “further product donations going forward, taking into account the local needs,” it said. The hard-hit Tohoku region “is historically important for Sony,” the company said, due to a high concentration of manufacturing sites, and “many employees and their families have also been affected by these devastating events."

Panasonic, too, has pledged 300 million yen in cash and equipment, including radios and flashlights, to help the disaster’s victims, it said Monday. The company is providing 20,000 radios and flashlights and 500,000 batteries to aid victims and support the recovery of affected areas, it said.

Hitachi also will donate 300 million yen to aid victims and help local recovery efforts, while Fujitsu has committed 100 million yen ($1.2 million), those companies said. “The Fujitsu Group is committed to restoring damaged IT systems in the regions with the highest priority placed on the lifeline systems such as electric power, water, gas, hospitals, and police and fire departments,” it said. -- Paul Gluckman, Rebecca Day, Mark Seavy

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Japan’s Internet has held up well since the quake and tsunami, according to Internet monitoring firm Renesys. Only about 100 of roughly 6,000 Japanese network prefixes in the global routing table were temporarily withdrawn from service -- and that number has decreased since the disaster, said Renesys Chief Technology Officer James Cowie. Other carriers around the region have reported congestion and drops in traffic due to follow-on effects of the quake, but most websites are up and operational, and the Internet is available to support critical communications, he said.