Spotlight News 6/2/2016

Another Vehicle Manufacturer Halts Factory Operations Following Explosion at Supplier Facility in Japan

Another major Japanese vehicle manufacturer halted production at three of its factories in Japan following a gas explosion at a facility manufacturing braking systems in Aichi Prefecture. The manufacturer halted production at the three factories, located in eastern Japan, due to a shortage in parts supplied by the factory that suffered the explosion. The manufacturer indicated production at the three factories would resume on Monday, June 6. The cause of the explosion, which injured at least four people, remains unclear.

The company is the second major Japanese vehicle manufacturer to suffer disruptions to factory production due to shortages in parts provided by the affected supplier facility. Another manufacturer halted production earlier this week at multiple assembly plants and support factories, including two major facilities in Aichi Prefecture, due to the explosion incident. The company indicated it resumed some factory operations by late afternoon yesterday and that all domestic production lines would resume today.

The explosion at the supplier facility underscores the significant impact that disaster incidents can have on downstream supply chain operations. The incident also highlights the potential for disasters to affect supply chain operations in countries with relatively robust business resilience capabilities, such as Japan. A subsidiary of the manufacturer that most recently halted some production operations in Japan also suspended operations at two plants in India this week due to a fire at a major supplier facility in that country. However, the company has not indicated whether it anticipates any compounded impact on its overall production volume as a result of the disruptions in the two countries.


Authorities in Cordoba, Argentina Rescue Peruvian Nationals Forced to Work in Poor Conditions at Clandestine Apparel Factory

Authorities in Cordoba, located in Cordoba Province, Argentina, rescued multiple Peruvian nationals who were forced to work in a clandestine apparel factory. In addition to rescuing the workers, officials also seized about 600 pairs of pants and eleven sewing machines. Authorities arrested a couple, also from Peru, who operated the clandestine factory. Clandestine factories employing forced laborers in poor working conditions are common in the country’s apparel and textile manufacturing sector.


ANF Officers in Pakistan Seize Nearly 1.5 Tonnes of Illegal Drugs From Cargo Vehicles

Anti-Narcotics Force (ANF) officers in Pakistan recently foiled two attempts to smuggle illicit narcotics within the country. After receiving a tip about a large shipment of hashish in the northeastern Chakwal region, officers set up a roadblock and seized 700 kilograms of the drug from a mini-truck traveling to Punjab. The driver of the vehicle escaped. In another operation, ANF officers intercepted an oil tanker carrying 790 kilograms of opium in the Lasbela district outside of Karachi. Both of these operations were driven by intelligence collection and information gathering.