Explosion at key steep plant in Aichi Prefecture could mean up to 10,000 vehicles affected
Come Monday 8 February 2016, Lexus is temporarily suspending production at its Japanese factories. The reason cited is an acute shortage of steel, owing to unforeseen circumstances at a key specialty steel plant.
Just a month earlier, on 8 January 2016, an explosion occurred at the No. 2 Bar Mill Shop of Aichi Steel's waterfront Chita plant in Aichi Prefecture, Japan, which had been supplying specialty steel for engine, chassis and transmission components. According to reports, the explosion occurred after an operator lit up the gas-fueled furnace at the start of the night-shift. When the employee in question lit up the pilot burner, the furnace instantly blew up in flames. Four employees were taken to hospital but were later declared fine. No deaths have been reported.
The temporary halt in production will last for six days until 13 February and Lexus expects the assembly line to resume normal operations on 15 February. In that time, production of up to 10,000 Lexus vehicles could be affected, including the Lexus NX.
The lost output underscores the fragility of Toyota's supply chain, which was already disrupted by the twin earthquake and tsunami tragedies to beset Japan in 2011.
Nonetheless, it's admirable how Lexus didn't shop around for another steel supplier to cover the interim loss in vehicle production. Some orders would no doubt be delayed as a result of the suspension in production, but Lexus has their reputation for high standards and quality control over raw materials to live up to. The stop gap measure of going with an alternative (and untested) steel supplier may be too big a risk and a price too high to pay.
Kudos to Lexus for making the right call.
Cheers!
All Lexus
Come Monday 8 February 2016, Lexus is temporarily suspending production at its Japanese factories. The reason cited is an acute shortage of steel, owing to unforeseen circumstances at a key specialty steel plant.
Just a month earlier, on 8 January 2016, an explosion occurred at the No. 2 Bar Mill Shop of Aichi Steel's waterfront Chita plant in Aichi Prefecture, Japan, which had been supplying specialty steel for engine, chassis and transmission components. According to reports, the explosion occurred after an operator lit up the gas-fueled furnace at the start of the night-shift. When the employee in question lit up the pilot burner, the furnace instantly blew up in flames. Four employees were taken to hospital but were later declared fine. No deaths have been reported.
The temporary halt in production will last for six days until 13 February and Lexus expects the assembly line to resume normal operations on 15 February. In that time, production of up to 10,000 Lexus vehicles could be affected, including the Lexus NX.
The lost output underscores the fragility of Toyota's supply chain, which was already disrupted by the twin earthquake and tsunami tragedies to beset Japan in 2011.
Kudos to Lexus for making the right call.
Cheers!
All Lexus
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