Companies seek to resume production as Beijing prepares list of companies that can resume operations
Tesla VW and SAIC are among several companies looking to get production back up and running at their Shanghai facilities after nearly three weeks of COVID-19 related shutdowns. The news comes after Beijing prepared a “whitelist” of priority companies to reopen or keep operations in Shanghai. The list included a range of companies ranging from car makers to semiconductor makers and medical firms.
According to Reuters, Tesla had already recalled workers to its Shanghai factory, where they would need to be on site. The company had planned to start production today, however it has now been postponed to tomorrow citing logistical issues with a supplier. Meanwhile, SAIC Motor said it was starting stress tests from Monday with an eye on resuming production, while VW said it was evaluating the feasibility of resuming production at its SAIC joint venture.
However, with COVID-related shutdowns in other cities in the country, it remains to be seen how manufacturers work around supply chain disruptions.
Meanwhile, Shanghai aims to contain the spread of COVID-19 outside quarantine zones by Wednesday, saying the city has stepped up testing measures and moved positive cases and their close contacts into isolation Is.
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Companies need to ensure a ‘closed loop’ for workers called to work while maintaining medical supplies. Under ‘Closed Loops’ employers have been asked to minimize employee exposure to others while going to work or by arranging for workers to remain in their factory premises.
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