12V Chinese Factories Partially Shuttered

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12 Volt Factories Close Due to Electricity Rationing in China

Are you sitting down?  China is cutting off the power supply to factories, especially in Northern China, which is causing some factories to lose electricity up to four or even five days a week.

This is impacting car audio factories, according to a half dozen 12 volt suppliers and distributors. There are reports of factory workers working by candlelight or using generators.  And some are just stopping production on certain days of the week.

The recent crackdown is part of China’s efforts to follow new environmental standards which require less use of coal and electricity.

On Monday, Reuters reported that power outages in China were widening to the point that production was halted at factories supplying Apple and Tesla.  It said electricity is being rationed not only at factories but at homes in various areas in China, especially in the North.

One car audio supplier said the new regulations will result in a two month delay in production and “It’s likely to get worse.” This full line supplier said electricity at its factory is shut down four days a week.

Another supplier said it was informed three days ago that electricity would be shut off at its factory two-to-three days a week.

Three suppliers said they received a letter in the past three days, reprinted below, outlining China’s policy.

Linkswell, whose factory is in the Southern part of China, which is less affected by the rationing, received the following message from one of its product managers in China, “Our industrial park only received notice for limited 50% power usage from Sept. 22-27th..  Not cut off like others.. Many places, they cut 5 days a week totally, and supply 2 days. Some even cut off 6 days a week.”

A 12 volt supplier said its factory has purchased a generator and so it is able to run at present. “It turns out one of our largest vendors has his own generator. We’re lucky they planned in advance,” said an executive.

Here is the letter several suppliers received from their factories:

China Rations Electricity Causing Factory Shutdowns

 

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11 Comments

  1. My sources from Taiwan which are very reliable China is arresting any Tiawanesse in China for overthrowing the Govt and closing their business,shutting power off as mentioned & taking them over which are a lot of 12vot related companies. Taiwan is also short on product witch they have 12volt factories their moving operations to Thailand to build factories but if China goes in they will freeze assets of everyone in Taiwan. China is prepairing for the worse if they take over Taiwan and will close their market except to select countries for trading if sanctions are imposed on China.
    Also China Ports was just on CNN Business that port workers work 16days than 7days of quarrentine than 7days at home and truckers are waiting 40hours plus to get trucks loaded at factories. So they were saying Chineese workers were getting mad and finding new work .Hope for the best

  2. I’m just glad this horror came about in the 4th quarter of my career! IRA, your brevity is spot on! Barry, it will never happen unless the USA invests its printed trillions domestically.

  3. Calculated and intentional shortages, IC’s, fuel, electric, production. Demand is high and the best way to raise prices is limit production. They (China) could give a rats ass about global warming. Every house has a chimney spewing black soot into the air. As for the politics, whatever they can do to harm or cripple the US is their agenda. I say, shame on the last 5 presidents for not putting more control on china. Now we are being led by the nose and have No choice. Containers 5x higher, products up 30% and all we can do is B&M!

  4. All feeding the migration of manufacturing out of China. It is time to consider whether some manufacturing can and should return to American factories.

  5. The PRC is messaging the west… “We [PRC] have significant ability to impact your [west] economy. We [PRC] have a very high tolerance for pain, probably much higher than yours [west]. Pay attention…” Regarding the Olympics… Only PRC nationals will be allowed to attend. No outsiders. What this is really all about is the PRC flexing muscles and leveraging relations with the western powers in the next 3 ~ 10 years.

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