The major Korean industries automobiles, electronics, and steel are impacted to a huge scale so much so that a number of big names among these have finally decided to shut down all their plants located in the US and Europe. As per sources this shut down includes giant companies like Samsung Electronics, LG Electronics, and Hyundai Motor.
The demand for goods has declined at a global scale to the level of nothingness. The same goes for supply. Even for those companies which were wilful of having their plants operational had to shut down on account of supply chain disruptions. Not just that, the less labor and scarcity of raw materials sourced from different places of the globalized world has also contributed towards the same.
These Korean companies are thus shutting their plants also to avoid the further spread of the disease COVID 19. Factories and plants of manufacturing are often crowded places bustling with a throng of the populace at all times. It is almost impossible to enforce social distancing if the plants are all working as usual. Thus, the decision has both been a result and precursor of the economic impact of the current corona outbreak.
In the situation of Hyundai Motor Group, its plants in Korea continue to produce and launch the cars, almost all plants except those that were situated in China have stopped to function. Those units that were produced there in the 12 global production bases have finally decided to stop their working. The Korean company Hyundai Motor Company’s factories that are based in the US, the Czech Republic, Turkey, Russia, Brazil, and India have been shut down with immediate effect.
Hyundai has decided that its Czech plant will stop any further production from March 23 to April 13. Kia Motors Georgia plant was already ceased for a period of 20 days and now its Slovakian plant will cease to produce units from March 23 to April 3. From March 27 to April 12, Hyundai has decided to halt its operations in its Turkish plant as well.
LG Electronics’ plants in Russia, Brazil, and Manaus have been shut down as well. The electronics company, LG Electronics’ washing machine plant that has got its popular base in Tennessee has been shuttered down since March 30. LG Electronics’ washing machine plant that is located in Detroit has also called off the production of auto parts in its factory since March 20.
In the Steel sector, the situation stands as grim. Hyundai’s 9 steel plants have halted their working. India’s POSCO processing bases, which are situated in Italy, Malaysia, India, the Philippines, have shut down one by one. It remains to be seen when the situation will become under control.