Pegatron announced Tuesday that it has suspended production at its facility in China’s largest city, as well as in the nearby city of Kunshan, until further notice.
“The date for the resumption of the plant will be determined by the local government,” the company said in a statement, adding that it would work with officials to resume operations “as soon as possible.”
It was not immediately clear which types of manufacturing would be affected. Pegatron, a well-known Taiwanese company iPhone making and other electronic devices, previously allowed to continue operating in Shanghai under a closed-loop system that would keep essential factory workers and other employees out – according to reports from multiple outlets, including Bloomberg.
The company declined to comment further.
I joined A growing list of businesses disrupted by China’s latest wave of Covid-19 infections – and what resulted from it restrictions.
Shanghai, the financial center of China and home to the regional headquarters of hundreds From global companies, has become the focus of China The latest outbreak of the Corona virusas well as her latest test Zero Covid strategy.
Since the last wave began in March, the city has recorded more than 220,000 cases of the Covid virus, leading to stringent stay-at-home orders and more. headache for business.
Country Auto industry Especially badly damaged. this week, Volkswagen (VLKAF) It said its factories in Shanghai and Changchun, the Chinese manufacturing hub, have halted production for weeks. Toyota (TM) She reported a similar issue, saying her factory in Changchun has been closed for nearly a month.
Tesla (TSLA)which has a Giga plant in Shanghai, has also had to pause production since late March, according to Reuters. The company did not respond to a request for comment from CNN Business.
On Saturday, the electric car maker New (NIO) It has also halted manufacturing, it said, describing how its suppliers across China have “suspended production one by one” due to disruptions linked to the epidemic in recent weeks.
Even before Pegatron’s announcement, apple (AAPL) It has had to deal with similar hurdles in its own supply chain. Last month, Foxconn, another large Taiwanese company, pending operations In Shenzhen due to the lockdown in the city north of Hong Kong.
CNN’s Beijing office and Yongxiong’s Seoul office contributed to this report.
