Sony Operations in Japan Still Impacted by Earthquake, Tsunami and Power Outages

Operations at several Sony facilities have been affected by the massive earthquake and tsunami, and related power outages in Japan, according to a company statement.

Sony said it is monitoring the status of each site and reviewing “the most effective recovery measures.”

Given the widespread power outages, Sony voluntarily suspended its operations at several sites, the company said.

The company has been able to determine that no employees suffered significant injuries while working at any company sites when the earthquake or tsunami took place last Friday.

As of Friday, the company continued to evaluate the impact of the earthquake, tsunami and related power outages on Sony's businesses and finances.

As of 11:00 am (JST) on March 14, Sony manufacturing operations were suspended at:

--Sony Chemical & Information Device Corporation

--Tagajyo Plant (Miyagi Prefecture)

--Tome Plant, Nakada/Toyosato Sites (Miyagi Prefecture) < Optical devices, IC cards >

--Sony Shiroishi Semiconductor Inc. (Miyagi Prefecture)

--Sony Energy Devices Corporation, Koriyama Plant (Fukushima Prefecture)

--Sony Energy Devices Corporation, Motomiya Plant (Fukushima Prefecture)

--Sony Manufacturing Systems Corporation, Kuki Plant (Saitama Prefecture) <Surface mounting equipment>

--Sony DADC Japan Inc., Ibaraki Facility (Ibaraki Prefecture)

In addition to these manufacturing sites, Sony Corporation Sendai Technology Center (Tagajyo, Miyagi) suspended operations due to earthquake damage. Possible damage at other Sony companies in Japan was being reviewed. Additionally, Sony Chemical & Information Devices Corporation, Kanuma Plant (Tochigi Prefecture), Sony Energy Devices Corporation, Tochigi Plant (Tochigi Prefecture) and Sony Corporation Atsugi Technology Center (Atsugi, Kanagawa) temporarily suspended operations voluntarily because of power outages.

The Wall Street Journal reports that Sony has evacuated all employees at the six facilities that are closed as of Friday. The facilities manufacture such items as: magnetic tapes, optical devices, integrated circuit cards and semiconductor lasers, The Journal said.

A plant in Kuki, Saitama prefecture, resumed operations, and a second plant in Ibaraki, Ibaraki prefecture, resumed partial production, The Journal added.

The events will impact Sony's ability on supplying components and devices in the shorter term. Sony is still reviewing whether there will be an impact on the manufacture and delivery of electronics.

In related news, Sony and its group companies will donate 300 million Japanese yen (about $3.7 million) to help relief and recovery efforts. A disaster relief fund will collect donations from Sony employees worldwide, and their contributions will be matched by the company through a matching gifts program. The company will also donate 30,000 Sony radios. Other donations are likely.

The affected Tohoku region is historically important for Sony, with a high concentration of manufacturing sites there, many Sony employees and their families were affected, the company said in a press release.

“In times like these, we are reminded of how important and fragile we are and of the positive impact we can have – both as individuals and, collectively, as a Company – to assist those in need,” Howard Stringer, chairman, CEO and president, Sony Corporation said in a company statement.  “We will continue to make the utmost effort to help the swift recovery of the affected communities in the region.”

In a related story, Sony Ericsson said the earthquake and tsunami that hit Japan would likely “disrupt” its supply chain, a Reuters (News - Alert) news story reported, according to TMCnet.