Handset keypad maker Ichia Technologies Inc (毅嘉科技) yesterday said that its sales this month would be affected by a Chinese government-ordered shutdown at its production plant in Suzhou.
The firm said that its Suzhou plant is expected to return to full capacity between July 9 and July 16, and that the effects of the disruption would be minimal as capacity can be redirected from other plants.
The disruption is estimated to affect 10 percent of the plant’s NT$500 million (US$16.39 million) monthly sales contribution, Ichia general manager Larry Sun (孫永祥) said at a news conference at the Taiwan Stock Exchange.
Next month, the shortfall would depend on the number of working days missed due to the closure, the company said.
Sun said that the company would be able to mitigate the disruption by redirecting capacity from its other plants.
The company has not lost any orders from its customers, who have agreed to or accepted delayed shipments, he said.
The Suzhou Environmental Protection Bureau launched a probe into the company’s plant between May 23 and Wednesday following a tip-off by a local environmental organization, resulting in an etching and a copper plating production line being ordered to be shut down, Sun said.
The regulator verified that the facility’s aging pipes were leaking wastewater, which was remedied with the necessary repairs on June 10, he said.
However, the regulator on Thursday notified the company that its efforts were inadequate and once again ordered a shutdown.
Following reports in Chinese media last month suggesting that Ichia is among a list of Xiaomi Corp’s (小米) suppliers that have broken environmental regulations, Sun said that the company does not count the smartphone maker among its customers.
Trading in Ichia shares was suspended yesterday.
They closed at NT$18.55 on Thursday.
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