S.Korea asks China for help in resuming production at auto parts plants (updated)

Kumho Tire

07/02/2020 02:30

(Adds details from the government action)
    By Joyce Lee
    SEOUL, Feb 7 (Reuters) - The South Korean government said on
Friday it has asked Chinese regional governments for help in
resuming production at South Korean auto parts suppliers'
factories in China.
    Hyundai Motor  005380.KS  has suspended most production in
South Korea as of Friday because the coronavirus outbreak in
China has disrupted the supply of parts, becoming the first
major car maker outside of China to do so.  urn:newsml:reuters.com:*:nL4N2A41I5
    Due to the production disruption, lines at parts suppliers
in South Korea including Hyundai Mobis  012330.KS  and Kumho
Tire  073240.KS  have also stopped, with concerns that the
disruption will adversely affect smaller second- and third-tier
subcontractors if the disruption is prolonged, the government
said. 
    South Korean ministries also said in a joint statement that,
if needed, they will allow affected South Korean suppliers to
work extended hours in South Korea to make up for shortfalls. 
    Even if Chinese regional governments in coming days lift the
ban on factory production aimed at stopping the spread of the
coronavirus, another difficulty is workers refusing to come to
work in fear of the virus, the government said.
    Of the roughly 10,000 workers at a South Korean supplier's
Qingdao factory, only about 15% can come to work, the South
Korean government said. 
    Hyundai Motor will offer workshop disinfection, installation
of thermal cameras, thermometers and cleaning agents for South
Korean suppliers' China factories that make wiring harnesses,
the component that has run out and caused Hyundai factories to
stop operations this week, the government added.

 (Reporting by Joyce Lee; Editing by Tom Hogue and Christopher
Cushing)
 ((jungyoon.lee@tr.com; +82 2 6936 1467;))