ID :
198569
Mon, 08/01/2011 - 17:15
Auther :
Shortlink :
https://oananews.org//node/198569
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Yen's rise, power shortages weighing on Japanese firms: ministry
TOKYO, Aug. 1 Kyodo -
Japanese manufacturers are feeling increasingly pressured by the yen's recent sharp appreciation against other major currencies and electricity supply constraints, the industry ministry said Monday.
The factors were cited at an extraordinary meeting the same day attended by Economy, Trade and Industry Minister Banri Kaieda, and director generals and other senior officials of the ministry to grasp each region's economic and industrial conditions in the wake of the yen's rise to a near record high against the dollar and power shortages following the March 11 earthquake and tsunami.
Manufacturers across Japan are concerned about the impact of the strong yen on their earnings, with some saying that the foreign exchange situation is affecting their capital investment plans and could prompt more companies to relocate their factories overseas to cut costs, according to the ministry.
Companies are also being forced to bear increased operating costs, the ministry has found, with some of them using in-house power generation systems following the damage inflicted by the disaster on the Fukushima Daiichi power complex and other power stations in northeastern Japan and a government order to strengthen nuclear reactor safety measures, which has resulted in a drop in power supply capacity in some regions.
Automakers, which have designated weekday plant shutdowns as part of efforts to reduce electricity consumption during peak times, said that the resulting increase in nighttime operations has led to a rise in labor costs and a greater physical burden on their employees.
Kaieda was quoted as saying at the meeting that it is a ''very serious situation'' and ministry officials need to beef up efforts to support those affected.
Japanese manufacturers are feeling increasingly pressured by the yen's recent sharp appreciation against other major currencies and electricity supply constraints, the industry ministry said Monday.
The factors were cited at an extraordinary meeting the same day attended by Economy, Trade and Industry Minister Banri Kaieda, and director generals and other senior officials of the ministry to grasp each region's economic and industrial conditions in the wake of the yen's rise to a near record high against the dollar and power shortages following the March 11 earthquake and tsunami.
Manufacturers across Japan are concerned about the impact of the strong yen on their earnings, with some saying that the foreign exchange situation is affecting their capital investment plans and could prompt more companies to relocate their factories overseas to cut costs, according to the ministry.
Companies are also being forced to bear increased operating costs, the ministry has found, with some of them using in-house power generation systems following the damage inflicted by the disaster on the Fukushima Daiichi power complex and other power stations in northeastern Japan and a government order to strengthen nuclear reactor safety measures, which has resulted in a drop in power supply capacity in some regions.
Automakers, which have designated weekday plant shutdowns as part of efforts to reduce electricity consumption during peak times, said that the resulting increase in nighttime operations has led to a rise in labor costs and a greater physical burden on their employees.
Kaieda was quoted as saying at the meeting that it is a ''very serious situation'' and ministry officials need to beef up efforts to support those affected.
