ISHINOMAKI, Japan (PA) - in the days after the earthquake and tsunamis of Japan, Masahiko Horio knew he had quickly its plant back online.
Customers have been redesigned. The backlog of orders grow.
Widgets of zinc and aluminium made by his company, Horio Seisakujo Co., appear insignificant at first sight. But the tiny metal components represent a vital fraction of the thousands of parts used in a single car.
The global supply chain that feeds the giant automakers - Toyota, Honda and General Motors - began the modest for companies such as Horio Seisakusho. Recent disaster of the Japan showed that a missing link can grind production lines around the world to a stop.
The imperative to resume the normal output is an urgent need for small parts suppliers in the northeast of the Japan, which must continue to meet clients or facing the prospect of losing major competitors and foreign companies. Already businesses in Southeast Asia and Taiwan see commands mount that the search of clients for alternative supply sources.
54-Horio Seisakusho in Ishinomaki employees hard produce some 600 different electronic and automotive parts, including the building blocks for navigation systems and antenna of the car. He managed to avoid damaging tsunami because it is located on a hill. Nevertheless, shortages of earthquake and power left its machines for two weeks.
Horio, the President of the manufacturer, to another serious problem as he worked frantically to restart operations. A still smaller company that finished and tested half a dozen of his plays was shattered by the tsunami on March 11. Horio failed ship supplies to clients without this last step in quality control.
A tour of 40 minutes away to where the company of 14 persons, Ogatsu Musen, once stood has revealed the extent of the destruction. The framework of the building remains, but little else. A boat jutting emptied structure. Metal components of Horio and equipment used to hone their lay scattered in the debris.
But there is an urgent work to do. And the President decided that if Ogatsu Musen had no building, it provide the equipment and make room for his own company, until he finds a new home.
"We thought to other options in the first place," said Horio. "But Ogatsu is fast and knows how to do this work." "And we didn't impose any other loads on our customers."
His company works in about 80 percent now capacity, but the future is far from clear. Horio is concerned about the shortage of electricity during the summer that can restrict the output and if customers could turn elsewhere.
"We need just to recover as quickly as possible and to ensure that our customers are confident in our ability to provide supplies," he said.
The crunch of Japanese parts has radiated in the world, from the Malaysia to the United Kingdom to the United States. Industry analysts and U.S. dealers have said that the auto plant closures will cause shortages of some models, including small cars and medium-sized enterprises, in the coming months.
Toyota Motor Corp. said this week that it will suspend production in Europe for eight days because of the shortage of parts. The move follows an announcement last week that the constructor of no. 1 in the world would stop production of automobiles in North America in April. In the Japan, Toyota suspended output except in three plants, which are running with limited capacity.
Toyota spokeswoman Shiori Hashimoto said that the company fought to secure approximately 150 types of auto parts.
Startups and similar problems plagued rivals such as Honda Motor Co., Nissan Motor Co., Ford Motor Co. and General Motors Co.
It is sad monitor the Hirohito Yokoyama, Director of molded Iwaki Co., about 40 miles south of Horio Seisakusho, in the town of Yamamoto (65 kilometres).
His company made slightly larger parts used in the engines. It sends components for torque converters, filters to oil and engine control units to the automakers such as Toyota and Honda.
"The worst thing for us is that stop us the line of our clients by stopping our own production," Yokoyama said in an interview with the company.
The earthquake caused structural damage to the plant and equipment. The tsunami swept thousands of used parts fanned rescue in the surrounding rice fields. Sitting in rows of boxes on the outside, caked in mud and unusable.
Electricity shortages have added to their woes. Parts of the plant remained in the dark, while the company introduced diesel generators to restore power.
The company estimates the costs associated with the disaster of approximately 300 million yen ($3.6 million), on top of the 360,000 yen ($ 4,300) a day, it is passed on diesel, Yokoyama said.
Molded Iwaki and Horio Seisakusho are located in Miyagi Prefecture, which has suffered the highest balance sheet of the disaster. Of the 13 700 deaths confirmed to date, more than 60% were in Miyagi. Its Pacific coastline is ravaged and tens of thousands evacuated people continue to live in emergency shelters.
Before the tsunami, sheet Governor Yoshihiro Murai, economic road to stimulate its economic output Prefecture 20 per cent by 2016. The automotive and electronics parts industries were the main pillars of its growth strategy.
In April 2010, the Prefecture has created an Office dedicated to the promotion of the automotive parts industry and celebrated when Toyota subsidiary Central Motor Co. opened a new plant in the prefecture in January. He had hoped to promote the local economy by connecting small manufacturers with large business related to the automobile with production bases in the region, including Toyota, Alps Electric Co. and Keihin Corp. engine parts manufacturer.
Instead, he is now responsible for assessing the damage to the industry, said Yuuki Takahashi, head of the Office for the Promotion of the automotive industry of Miyagi.
"We really move forward," he said of the initial economic momentum in the region.
The major concern now manufacturers of parts of the region is if they can actually recover.
"Even if they recover, they ask whether their products will be sold again", he said. "If several months travelling, builders themselves could go elsewhere and form new relationships."
Associated Press writer Shino Yuasa contributed to this report.
Copyright ? 2011 the Associated Press. All rights reserved.
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