JAPAN DISASTER: Nissan to close 3 US plants for 6 days

01 April 2011 22:17  [Source: ICIS news]

HOUSTON--Automaker Nissan plans to close three US plants for six days because of disruptions caused by the earthquake and tsunami in Japan, the company said on Friday.

It is also closing two plants in Mexico for five days, Nissan said.

The company will try to make up the lost production through the balance of its fiscal year, Nissan said.

Nissan is also shipping US-made engine components to its plants in Japan, it said.

Meanwhile, auto-part-maker Renesas indicated that 15% of its production capacity would be down until July, according to Jefferies & Co, an investment bank.

Renesas supplies 30% of the world's engine control modules, Jefferies said. As a result, up to 5% of the world's automobile production could be at risk.

Automobiles are a large end market for materials such as polypropylene (PP); nylon; acrylonitrile butadiene styrene (ABS); polyurethane flexible foam; synthetic rubber; and paints and coatings.

The American Chemistry Council (ACC) estimates that each automobile contains an average of $2,700 (€1,890) worth of chemicals.

($1 = €0.70)

Paul Hodges studies key influencers shaping the chemical industry in Chemicals and the Economy

By: Al Greenwood
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