This is NOT a Test: Beijing Announces Plan to Close Factories, Stop Construction for Olympics

Monday, April 14, 2008 4:30
Posted in category Uncategorized

Well. According to the IHT and NYT, it is true. There is a plan, and There will be closures.

Five provinces and municipalities surrounding Beijing will also be shuttering factories, although their plans were not released. They are: the city of Tianjin; Hebei, Shanxi and Shandong provinces and the huge Inner Mongolia region.

East China Province Gives Ultimatum to Polluters Before Olympics

In addition to the closures, where people need to really pay attention and assess thesituation is how they will operate logistically when Beijing takes trucks off the road:

The environment body said gas stations, oil depots and tanker trucks would cease to operate unless they were equipped with “oil vapor recovery” technology

Where I would also like for everyone to focus is that between now and the games, there are several events that I feel increase the risks of much larger closings:

1) If pollution levels do not improve, a wider net will be cast than is currently being announced

2) A continue drought condition in the north may reduce water reserves further, and thus water rationing may go into place before the games… and this will impact manufacturers relying on large quantities of water

3) it was only 2 months ago that the south lost power. If any problems with the grid, or its ability to supply the games, large energy consuming facilities may be asked to shut down.

Remember, everything they are saying nw is subject to change, and my gut is telling me that while Chinese firms are likely to receive the first closure orders, foreign firms are not immune from closures.

Start assessing your risk, and develop your contingency plans…

and remember. you heard it here first.If You Are Manufacturing In Beijing, Tianjin, or Shanghai. PAY ATTENTION

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