Japan Earthquake Update Communication

The following is an update of Walbro’s Japan earthquake recovery efforts as of March 23rd:

  • Walbro Japan operations have restarted and is nearing 60% of production.

  • Equipment recalibration in our Kakuda plant is nearly complete.

  • Temporary bus service has been implemented for employees but access to the plant due to lack of gasoline is still impaired.

  • The gasoline shortage in Northern Japan is improving, and individual transportation and logistics are still limited.

  • One of our injection molding suppliers was severely damaged  and is without power.  All dies have been recovered and shipped to our Kakuda plant for cleaning and inspection.  We have identified 3 other injection molding suppliers who will produce the components once the tools have been inspected.

  • As of this writing one (1) WJP employee remains missing and his mother was found dead.

  • Three (3) other WJP employees have lost family members including their fathers, mothers & grandparents.

  • Two (2) WJP employees have lost their homes as a result of the earthquake and tsunami.

  • Five (5) WJP employees’ homes were flooded and seriously damaged.

·         ·         ·        

As of March 18, 2011

The Walbro Japan Kakuda Plant has recovered electricity and successfully established all network communications including oversea on today, March 18th.  However, the plant is still without public water supply. In a wide area of northern Japan, there are still serious gasoline shortage affecting logistics and the ability of workers to commute to their jobs.  The damaged equipment and manufacturing facilities are now under repair and being re-calibrated. We are planning to be finished with these tasks next week. Some of our suppliers have suffered significant damage by the Tsunami and it is expected that recovery at their sites will take some time. A team has been formed to recover inventory at affected suppliers.  The inventory that has been recovered so far is being inspected. There are a number of variables affecting our recovery, but we are targeting resumption of 30% of the Kakuda operation on March 22nd. Furthermore, the impact of these events on Walbro’s supplier will have an effect on Walbro’s operations in Thailand, and China.  Walbro is still studying the effects of potential supply disruption on its other operations.

We plan to provide specific production schedule as well as the shortage list for your products next week.

As we state above, the situation can be affected by a number of variables, but we are undertaking efforts to recover as quickly as possible while also considering the safety and welfare of our employees.   Therefore, the timing of planned recovery events as provided above may change. 

We sincerely appreciate your patience and support.

 

 
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