Corporate Activities Almost Back to Normal in Quake-Hit Osaka

June 26, 2018

Osaka- Corporate activities have almost returned to normal in the western Japan prefecture of Osaka, which was hit by a powerful earthquake a week ago.

Economic impacts of the 6.1-magnitude temblor "have been limited," an economist said.

Still, concerns remain, including about fund-raising mainly at small companies, industry sources said.

The quake struck on June 18, measuring lower 6, the third-highest level on the Japanese seismic intensity scale, in the cities of Takatsuki and Ibaraki, and other municipalities in the northern part of the prefecture, which has a large economy. It left five people dead and hundreds of others injured.

On Monday, Japanese Minister of Economy, Trade and Industry Hiroshige Seko visited the Osaka Chamber of Commerce and Industry and Osaka Gas Co. <9532>, and received explanations about the progress in post-quake recovery work.

City gas supplies were almost restored by Sunday night. Work to restart utility services progressed faster than planned as power and gas companies from other parts of the country sent workers to areas hit by the quake to support the restoration work.

Seko praised the "cross-company restoration efforts."

Many affected manufacturers have brought their plants back online. Daihatsu Motor Co., which temporarily halted operations at three plants due to a disruption of auto parts supplies, resumed normal production on the night of June 19.

Operations at three plants of major electronics maker Panasonic Corp. almost returned to normal by Monday.

Retailers were hit by shortages of products soon after the quake. But an official of supermarket operator Life Corp. <8194> says, "Most of our outlets (in affected areas) now have sufficient product stocks."

Meanwhile, impacts of the quake remain at some companies. Suntory Holdings Ltd. continues to suspend the output of some bottled beverages, including The Malt's, a flagship beer brand for the group, due to damage to production equipment.

Cancellations of hotel reservations have subsided. But an economist warned, "It will take time to see how far the earthquake will affect demand from visitors from abroad."

At meetings with Seko, officials of local commerce and industry associations and others from affected municipalities complained about damage to facilities and delays in product shipments.

At a press conference later on Monday, the minister said, "Some companies may face funding problems toward the end of this month, so we should be fully prepared to respond to the situation." Jiji Press