Post by trueblue on Aug 17, 2022 2:41:42 GMT
'China's worst heatwave in 60 years is forcing factories to close'
Hong Kong (CNN Business)China's Sichuan province has ordered all factories to shut down for six days to ease a power shortage in the region as a scorching heat wave sweeps across the country.
Sichuan is a key manufacturing location for the semiconductor and solar panel industries and the power rationing will hit factories belonging to some of the world's biggest electronics companies, including Apple (AAPL) supplier Foxconn and Intel (INTC).
The province is also China's lithium mining hub — a key component of electric car batteries — and the shutdown may push up the cost of the raw material, analysts said.
China is facing its fiercest heat wave in six decades, with temperatures crossing 40 degrees Celsius (104 degrees Fahrenheit) in dozens of cities. The extreme heat has caused a spike in demand for air conditioning in offices and homes, putting pressure on the power grid. The drought has also depleted river water levels, reducing the amount of electricity produced at hydropower plants.
China is facing its fiercest heat wave in six decades, with temperatures crossing 40 degrees Celsius (104 degrees Fahrenheit) in dozens of cities. The extreme heat has caused a spike in demand for air conditioning in offices and homes, putting pressure on the power grid. The drought has also depleted river water levels, reducing the amount of electricity produced at hydropower plants.