The outbreak of the Covid-19 outbreak in China in March led to a lockdown in Shanghai, the country’s largest city, disrupting work at technology plants, electric cars and factories of other industries, causing major problems in the supply chain, logistics and production.
Tesla closed its huge factory in Shanghai on March 28, but was allowed to reopen its factory on April 19. Volkswagen closed its Shanghai plant on April 1, but GM decided not to close its plant and was instead allowed to remain open under this – called “closed-loop” operations.
Closed-loop measures require employees to live, work and sleep in the factory while it continues to operate, but they are not allowed to leave the factory to ensure they are not bringing or bringing Covid-19 into the community outside the factory. In the factory from abroad during the closure.
Closed-loop procedures keep the factory open
Taiwan-based Quanta Computer, which assembles MacBooks and other Apple products in Shanghai, adopted a closed-loop system in April for its employees to enable the company to stay open while the region is closed.
Bloomberg reported on May 6 that China’s Covid-19 lockdown, which began in March, has finally reached boiling point with frustrated tech workers at the Quanta plant in Shanghai. Covid cases inside the factory premises, according to the report.
Bloomberg said Quanta has not commented on the riots, but a factory employee said the Chinese government plays a central role in running the factory’s operations. On the evening of May 5, Quanta workers clashed with factory guards and crashed through isolation barriers after they had been closed at the factory for several weeks.
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Tensions at the factory in Shanghai’s Songjiang district fueled the conflict after workers tried to return to their accommodations after their shifts, Taiwan media agency UDN reported, Bloomberg reported. More than 100 employees jumped over a barrier and ran in front of the guards, ignoring their warnings. A worker said employees were tired and frustrated with the controlled environment at the factory.
The report said the factory had resumed operating normally by the morning of May 6.
The shutdowns in Shanghai led to protests and complaints culminating in the uprising at the Quanta plant. The implementation of closed-loop measures has also resulted in more than 70% of industrial manufacturing facilities in Shanghai returning to production. Officials said 90% of 660 major industrial firms have resumed production, according to Bloomberg.
The report said Quanta generates more than 50% of its revenue through its partnership with Apple. The company also deals with Hewlett Packard Inc. (HPQ) – Get an HP Inc. report.Dell Technologies (Del) – Get a Dell Technologies Inc Class C . reportand Microsoft (MSFT) – Get a Microsoft report.
Other Apple factories are closed
Foxconn Technology Group on March 14 closed its factories in Shenzhen in southern China near Hong Kong after city officials implemented a Covid-19 lockdown. Foxconn also announced on April 15 a Covid-19 shutdown in the Zhengzhou Airport Economic Zone where Apple’s largest iPhone factory is located. The shutdown prompted the company to require its employees to take a mandatory Covid test.
Analysts said the Covid-19 lockdowns in China could lead to a production loss of 6 million to 10 million iPhone units, according to 9to5Mac. Other Apple products affected by the shutdowns include the MacBook Pro and iPad Air.