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Pavala
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Post Number: 12821
Registered: 02-2008
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Posted on Monday, March 28, 2011 - 09:49 am:   Insert Quote Edit PostDelete PostPrint Post   Move Post (Moderator/Admin Only)Ban Poster IP (Moderator/Admin only)

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Scallion
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Post Number: 7554
Registered: 05-2009
Posted From: 206.123.17.17

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Posted on Monday, March 28, 2011 - 09:47 am:   Insert Quote Edit PostDelete PostPrint Post   Move Post (Moderator/Admin Only)Ban Poster IP (Moderator/Admin only)

Manufacturing

The earthquake aftermath is likely to create at least minor problems
around the world for equipment makers and buyers. But long term, some
big industrial companies say massive rebuilding in Japan could lead to
growth.
Japan-based companies, including Komatsu Ltd., Hitachi Construction
Machinery Co. and Kobelco Construction Machinery Co., are the world's
dominant makers of excavators and export them world-wide.
At a trade show in Las Vegas last week, officials of Komatsu, Japan's
biggest maker of construction equipment, said most plants in Japan were
operating and others were preparing to resume operations. But Hisashi
Shinozuka, president of Komatsu's U.S. unit, said 10% to 15% of
Komatsu's 300 or so suppliers in Japan have earthquake-related problems
that put production in doubt, at least temporarily. "We think we're OK for
a while" with existing supplies, Mr. Shinozuka said. If certain key
suppliers are out of action for three or four months, there may be a big
impact, he said.
Jai NTR, Jai Jai TDP
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Scallion
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Post Number: 7553
Registered: 05-2009
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Posted on Monday, March 28, 2011 - 09:46 am:   Insert Quote Edit PostDelete PostPrint Post   Move Post (Moderator/Admin Only)Ban Poster IP (Moderator/Admin only)

Steel

In 2010, Japan surpassed China to become the world's biggest steel
exporter. Despite the drop expected in Japanese steel production as a
result of the earthquake, the world's steel market is unlikely to see
extended volatility in prices and supply.
The reason: Mills in the U.S., Europe, Asia and elsewhere, still feeling
the effects of the global recession, are underutilized. Major mills in 64
countries are operating at about 82% capacity, according the World Steel
Association. Those plants are raising production. Shipbuilders in the Asia
region, which have relied on Japanese steelmakers, have asked South
Korea's Posco, the world's third-largest steelmaker by output, to make
more steel used in ship construction as a hedge against potential
disruptions. And steelmakers in China and Taiwan say their mills could
supply those relying on Japanese producers.
Industry analysts are predicting Japan production could fall as much as
20%, or 24 million metric tons on an annual basis, within the next three
months.
Nippon Steel Corp. and JFE Steel Corp., Japan's two largest steelmakers,
said blast furnaces temporarily closed by the earthquake are back in
operation. But energy remains the big issue facing all of Japan's steel
mills. Steel plants, especially electric-arc furnaces that melt recycled steel
to make new product, consume huge amounts of electricity and have been
affected by shortages as the nuclear crisis leaves a hole in the power grid.
Jai NTR, Jai Jai TDP
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Scallion
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Post Number: 7552
Registered: 05-2009
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Autos

For more than two decades, Japan and its auto makers have been
ascendant, grabbing share from their U.S. and European rivals, setting
standards for quality and racking up huge profits.
For the rest of this year, and possibly beyond, Japanese auto makers will
have to focus their energies and resources on rebuilding at home, giving
U.S., Korean and European rivals an opening to zoom ahead elsewhere,
especially in emerging markets including China and India
In the U.S., the playing field already has shifted, putting Japan's biggest
auto makers on the defensive. Toyota Motor Corp., after its quality
troubles last year, is losing share, mostly to Hyundai Motor Co. But Ford
Motor Co. and General Motors also are reinvigorated. Together, they
earned more than $10 billion last year.
Jai NTR, Jai Jai TDP
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Scallion
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Post Number: 7551
Registered: 05-2009
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Posted on Monday, March 28, 2011 - 09:44 am:   Insert Quote Edit PostDelete PostPrint Post   Move Post (Moderator/Admin Only)Ban Poster IP (Moderator/Admin only)

Electronics
Japan is a breadbasket for the global gadget business, where many of the
key ingredients for hot electronics are produced. Yet the biggest
producers of videogame consoles, television sets and other devices
remain uncertain how the recent earthquake there will eventually ripple
through to consumers.
Electronics makers haven't yet cut production estimates because of the
quake. But even companies that say they've experienced no disruptions
from the disaster are careful to add the words "so far" to their
assessments.
Nintendo Co., for example, is preparing for the U.S. introduction on
March 27 of its Nintendo 3DS hand-held game player. The company says
no one from the company was injured by the disaster and its facilities in
Japan weren't damaged. "Business operations, including future product
shipments, have not been significantly affected so far," Nintendo said.
Other hot devices, such as Apple's iPad 2, depend on parts from Japan
that are likely to be in short supply. The iPad 2 contains five components
sourced from Japan, including flash memory chips from Toshiba and an
electronic compass from AKM Semiconductor Inc., according to an
analysis of the product by IHS iSuppli, though the firm says Apple could
find some of the parts from manufacturers outside the country. Apple
declined to say whether it has seen any impact from the situation in
Japan. Apple's online store is showing a shipment delay of four to five
weeks for the device.
Sony Corp. said operations at nine of its 25 plants in Japan, which
manufacture products such as batteries, chips and home audio equipment,
had been temporarily or partially suspended because of quake damage or
power issues. Three have resumed some operations, but Sony is
temporarily suspending operations at six other sites because of parts and
component shortages. It aims to restart those operations as early as April
1.
Jai NTR, Jai Jai TDP
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Scallion
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Post Number: 7550
Registered: 05-2009
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Posted on Monday, March 28, 2011 - 09:44 am:   Insert Quote Edit PostDelete PostPrint Post   Move Post (Moderator/Admin Only)Ban Poster IP (Moderator/Admin only)

Chips
Makers of computer chips confront several problems. Assuming those in
the quake zone can restart their factories and keep them running -- far
from a given, amid power-supply problems -- they face potential
shortages of raw materials and customers, whose factories may
themselves be shut down or hard to reach.
One of the biggest wild cards is the supply of silicon wafers, disks the
size of dinner plates that are the foundation of chip fabrication. Research
firm IHS iSuppli estimates that Japan accounts for about 60% of the
world's supply; two factories accounting for about 25% of wafer
shipments were shut down after the quake.
"That is a long-term type challenge," said Paul Reilly, executive vice
president and chief financial officer of Arrow Electronics Inc., one of the
largest chip distributors. "We are watching it very closely."
Most chip makers keep multiple weeks of inventory of wafers on hand.
The potential impact on these companies depends on when wafer makers
return to full production and how quickly alternative wafer factories can
gear up.
Toshiba Corp. and partner SanDisk Corp. largely escaped problems at
their factories for making flash-memory chips used in popular products
like Apple Inc.'s iPhone and iPad. But another Toshiba chip factory was
damaged, along with another for making liquid-crystal-display panels.
Texas Instruments Inc. has given one of the most detailed breakdowns of
quake impact, saying a factory in Miho that accounted for about 10% of
its 2010 revenue isn't likely to be shipping again in full volume until
September.
Jai NTR, Jai Jai TDP
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Scallion
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Username: Scallion

Post Number: 7549
Registered: 05-2009
Posted From: 206.123.17.17

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Posted on Monday, March 28, 2011 - 09:43 am:   Insert Quote Edit PostDelete PostPrint Post   Move Post (Moderator/Admin Only)Ban Poster IP (Moderator/Admin only)

Japan's devastating combination of earthquake, tsunami and nuclear
accident was a wake-up call reminding companies across the world just
how much they rely on the island nation.
On the demand side, the country accounts for nearly 9% of the world's
economic output and has been an important entry point in Asia for
companies from banks to retailers. The destruction disrupted sales,
dislocated employees and will likely produce lingering caution among
consumers.
But it is the supply side that has been the biggest source of surprises.
Economists who thought they had a handle on the likely impact found, on
closer inspection, that Japan was an important source of all manner of
advanced components used heavily in Asia and elsewhere to assemble
final goods.
Japan makes 60% of the world's silicon wafers -- the building blocks of
computer chips. The shutdown of two factories by the earthquake took
out a quarter of the world's supply. Credit Suisse says the country also
makes 90% of a substance called BT resin used to make printed circuit
boards.
Inventories of each seem to be holding up, but other disruptions had a
more immediate impact. The world's auto makers, for instance, had
trouble coping with the shutdown of a Hitachi Ltd. factory north of
Tokyo that makes airflow sensors used to measure the amount of air
coming into engines. Hitachi makes 60% of the world's supply. Last
week, in a modern "for lack of a nail" story, General Motors Co. was
forced to shut a plant in Louisiana, and Peugeot-Citroen had to cut back
production at most of its European plants.
Producers in a variety of industries are still sorting out the possible
effects to their supply chains and scrambling for alternative parts or
suppliers. Many understand the impact on their own supplies, but it's
trickier trying to get a grip on disruptions to their suppliers' suppliers.
Ultimately, the pace of recovery in Japan will determine the severity of
any shortages and the scale of the damage to businesses around the
world.
Japan is the world's fourth-largest exporter, and companies such as
Caterpillar Inc. use the country as a platform for manufacturing
equipment that they then sell to China and elsewhere.
Some companies that make construction machinery could get a boost as
the country gets deeper into the hard work of rebuilding. Some estimate
the tab could run to $200 billion. The Japanese government will pay
much of it, but insurance companies might be on the hook for as much as
a fifth of the total, by some estimates.
Jai NTR, Jai Jai TDP

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