In March, a revival of a Covid-19 epidemic in China prompted a lockdown in Shanghai, affecting work at technology and electric vehicle companies as well as factories in other industries, causing serious supply chain, logistical, and production concerns.
Tesla closed its Shanghai Gigafactory on March 28, but was allowed to resume it on April 19. Volkswagen closed its Shanghai plant on April 1, but General Motors chose not to close its plant and was instead allowed to operate under “closed loop” operations.
Closed-loop precautions require personnel to live, work, and sleep at the plant while it is still operational, but they are not allowed to leave to avoid spreading the Covid-19 virus to others a community outside the workplace, or bring it in from the outside during the lockdown
Closed-loop controls keep the plant running
Quanta Computer, a Taiwanese business that assembles MacBooks and other Apple products in Shanghai, implemented the closed-loop system for its employees in April to allow the company to stay open during the region’s lockdown.
According to Bloomberg, the Covid-19 lockout in China, which began in March, has finally reached a boiling point with Quanta’s Shanghai factory’s dissatisfied IT staff. According to the report, one worker expressed concern about further tightening of procedures as a result of positive Covid cases on the factory’s campus.
According to Bloomberg, Quanta declined to comment on the riot, but a plant employee stated the Chinese government was playing a key role in the factory’s operations. After being locked down inside the facility for weeks, Quanta workers fought with factory guards and smashed through isolation barriers on the evening of May 5.
Tensions erupted at the factory in Shanghai’s Songjiang area after workers attempted to return to their dorms after their shifts, according to Taiwanese news source UDN, according to Bloomberg. Over 100 employees raced past security after jumping over a barrier and ignored their warnings. The plant’s controlled environment had made employees exhausted and frustrated, according to one worker.
According to the report, the factory was back in business by the morning of May 6.
The lockdowns in Shanghai have sparked demonstrations and complaints, culminating in the insurrection at the Quanta plant. Closed-loop measures had also resulted in the resumption of production at more than 70% of Shanghai’s industrial manufacturing plants. According to Bloomberg, 90 percent of 660 major industrial enterprises have resumed production.
According to the article, Quanta’s agreement with Apple accounts for more than half of its revenue. Hewlett Packard Inc. is another client of the firm. (HPQ) – Get a report on HP Inc., Dell Technologies (DELL) – Get a report on Dell Technologies Inc Class C, and Microsoft (MSFT) – Get a report on Microsoft Corporation.
Other Apple Plants Will Close
After city officials enacted a Covid-19 lockdown on March 14, Foxconn Technology Group shut down its factories in Shenzhen, China, near Hong Kong Foxconn also declared a Covid-19 shutdown at the Zhengzhou Airport Economy Zone, where Apple’s largest iPhone manufacturing is located, on April 15.Because of the lockout, the firm has made Covid testing mandatory for all employees.
According to 9to5Mac, the China Covid-19 lockdowns might result in a production loss of 6 million to 10 million iPhone handsets. The lockdowns also affect the MacBook Pro and iPad Air, among other Apple products.