Add Toyota Motor Corp. and Contemporary Amperex Technology Co., the world's largest battery maker, to the growing list of companies shutting down factories in China's Sichuan province as a drought-induced power crisis worsens, according to Bloomberg.
Toyota closed its plant in the provincial capital of Chengdu until Saturday, a company spokesperson said, while Contemporary Amperex halted operations at its lithium battery factory in Yibin.
Sichuan is one of China's most populated provinces, with 80 million inhabitants, and is home to a major manufacturing hub heavily reliant on hydropower.
However, a heatwave and drought have caused reservoir levels to drop, resulting in declining power generation and forcing local authorities to ration power for factories.
The shutdowns add to a growing number in industries stemming from solar panels to aluminum smelting. Volkswagen AG said on Monday that its factory in Chengdu is affected by power shortages, but that it was only expecting slight delays in deliveries to customers. Foxconn Technology Co. also makes Apple iPads in the province, but said it was seeing only limited impact from the drought so far. -Bloomberg