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TASS.- Avtotor has announced that car production may shrink by 8000 units during the first quarter of the year, due to the interruption in component supplies.
The car manufacturer has previously stated that supply disruptions from factories located in South Korea for the production of cars are possible due to the spread of the virus and drawn attention to the risk of shrinkage in production in comparison with 2019, when 212,000 automobiles were manufactured, mainly South Korean brands: more than 139,000 KIA and over 49,500 Hyundai vehicles.
“In connection with interruptions in component supplies due to the Coronavirus epidemic, a shrinkage is expected in car production during the first quarter of 2020, compared to the planned figure. The shrinkage will be equivalent to approximately 8000 vehicles” - as reported by the press office.
The enterprise is taking measures to adjust the production regime, in order to prevent a halt in operations, said the company representative, not ruling out the possibility of a further drop in production. The situation may spread into other industries. “The shrinkage in production volumes and the supply of components will obviously lead to a reduction in transshipment in ports, railways and road transport” - as added by the press service.
Components for car production from South Korea are received via the Baltic port. Avtotor has transported 45,642 containers of components in 2019, which made up more than 70% of the port traffic. The company receives over 70% of its orders through the Kaliningrad Maritime Trade Port. The share of Avtotor cargo in the carriage turnover of the Kaliningrad branch of Russian Railways amounted to 52.5% in 2019. Avtotor has transported more than 84,000 containers of automotive equipment during the year, as reported by the press office of the company.
