Global automakers, including Volkswagen AG and Toyota Motor Corp, scrambled yesterday to assess damage to cars and facilities after two massive explosions in the port city of Tianjin, China’s largest automobile import hub.
The blasts that ripped through a warehouse storing volatile chemicals in the city late on Wednesday were so strong that they damaged buildings a few kilometres away.
French carmaker Renault SA said nearly 1,500 of its imported cars stored in a warehouse at the port had been burned while Toyota said the blasts broke windows at its car assembly, logistics and research buildings, which are jointly run with China FAW Group Corporation.
Photo: AFP
Operations at the Toyota facilities had been closed for a week-long summer holiday and no one was injured, but a spokesman at Japan’s biggest carmaker declined to say whether it could resume production as normal from Monday.
“In our current view, the damage isn’t that severe,” a China-based Toyota spokesman said.
Roughly 40 percent of cars imported to China pass through Tianjin’s port, or more than half a million units last year, according to Xinhua news agency. China imported 372.4 billion yuan (US$59.9 billion) in cars last year, official data show.
The blasts tore through an industrial area in the broader Tianjin port, killing at least 54 people, including a dozen firefighters, state media said.
Subaru maker Fuji Heavy Industries Ltd said more than 100 cars that were imported from Japan and were awaiting customs clearance in a warehouse had been damaged by broken windows. The warehouse, which does not belong to Fuji Heavy, is about 2km from the blast site, it said.
Volkswagen said that some of its imported cars were damaged but did not know exactly how many had been affected. Photographs from the scene showed rows of Beetles and other VW-brand cars badly scorched by the explosion.
“We have a task force in the area to find out more and which is primarily concerned with the wellbeing of our employees,” a VW spokeswoman said.
Ford Motor Co, Nissan Motor Co Ltd and Toyota also said they were checking their cars parked around the port.
South Korea’s Hyundai Motor Corp and Kia Motors Corp had a total of 4,000 cars near the blast site but did not have specific details on the extent of damage, the companies said.
BMW AG said it has two vehicle distribution centers near the port, but the damage was unknown given the area had been cordoned off by authorities.
Mazda Motor Corp said over 50 cars imported from Japan were also damaged, with peeling paint and scratches. One nearby showroom was shut on Thursday after its windows shattered, it said.
Other Japanese businesses with a presence in Tianjin including a mall owned by Aeon Co and an Isetan Mitsukoshi Holdings Ltd department store sustained minor damage. Otsuka Holdings Co said a factory that makes the Pocari Sweat sports drink would be closed yesterday and today as it assesses the site’s safety.
Shipping giant Nippon Yusen KK said it could not assess damage at a terminal it operates in Tianjin because the area was off-limits, adding that a few workers sustained minor injuries at an affiliated car distribution company, which was also closed.
EXTRATERRITORIAL REACH: China extended its legal jurisdiction to ban some dual-use goods of Chinese origin from being sold to the US, even by third countries Beijing has set out to extend its domestic laws across international borders with a ban on selling some goods to the US that applies to companies both inside and outside China. The new export control rules are China’s first attempt to replicate the extraterritorial reach of US and European sanctions by covering Chinese products or goods with Chinese parts in them. In an announcement this week, China declared it is banning the sale of dual-use items to the US military and also the export to the US of materials such as gallium and germanium. Companies and people overseas would be subject to
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) founder Morris Chang (張忠謀) yesterday said that Intel Corp would find itself in the same predicament as it did four years ago if its board does not come up with a core business strategy. Chang made the remarks in response to reporters’ questions about the ailing US chipmaker, once an archrival of TSMC, during a news conference in Taipei for the launch of the second volume of his autobiography. Intel unexpectedly announced the immediate retirement of former chief executive officer Pat Gelsinger last week, ending his nearly four-year tenure and ending his attempts to revive the
WORLD DOMINATION: TSMC’s lead over second-placed Samsung has grown as the latter faces increased Chinese competition and the end of clients’ product life cycles Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) retained the No. 1 title in the global pure-play wafer foundry business in the third quarter of this year, seeing its market share growing to 64.9 percent to leave South Korea’s Samsung Electronics Co, the No. 2 supplier, further behind, Taipei-based TrendForce Corp (集邦科技) said in a report. TSMC posted US$23.53 billion in sales in the July-September period, up 13.0 percent from a quarter earlier, which boosted its market share to 64.9 percent, up from 62.3 percent in the second quarter, the report issued on Monday last week showed. TSMC benefited from the debut of flagship
TENSE TIMES: Formosa Plastics sees uncertainty surrounding the incoming Trump administration in the US, geopolitical tensions and China’s faltering economy Formosa Plastics Group (台塑集團), Taiwan’s largest industrial conglomerate, yesterday posted overall revenue of NT$118.61 billion (US$3.66 billion) for last month, marking a 7.2 percent rise from October, but a 2.5 percent fall from one year earlier. The group has mixed views about its business outlook for the current quarter and beyond, as uncertainty builds over the US power transition and geopolitical tensions. Formosa Plastics Corp (台灣塑膠), a vertically integrated supplier of plastic resins and petrochemicals, reported a monthly uptick of 15.3 percent in its revenue to NT$18.15 billion, as Typhoon Kong-rey postponed partial shipments slated for October and last month, it said. The