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    OPINION: Why Europe wants Africa to end crop protection in case science one day shows it’s harmful

    OPINION: Why Europe wants Africa to end crop protection in case science one day shows it’s harmful

    Family Bank Ink Fodder Financing Deal With Dairy Farmers

    Family Bank Ink Fodder Financing Deal With Dairy Farmers

    Hennessy launches new initiative to support bartenders in Kenya

    Hennessy launches new initiative to support bartenders in Kenya

    High impact enterprises in Africa rewarded

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    ‘Peace more powerful than war’, Pope Francis says in Iraq

    ‘Peace more powerful than war’, Pope Francis says in Iraq

    ABSA Group Deputy CEO dies of COVID-19 complications

    KenGen Shareholders to Get Sh1.65B Dividend Payout

    KenGen Supports Employees with a Return-to-Work Roadmap

    How much YouTube pays influencers for 100,000, 1 million, and 150 million views

    How much YouTube pays influencers for 100,000, 1 million, and 150 million views

    Consulting firm IPE Africa rebrands, appoints new country head

    Consulting firm IPE Africa rebrands, appoints new country head

  • Markets
    Hennessy launches new initiative to support bartenders in Kenya

    Hennessy launches new initiative to support bartenders in Kenya

    Mitumba trade employs over 2 million Kenyans new report reveals

    Mitumba trade employs over 2 million Kenyans new report reveals

    African Airlines Association call for support measures to rescue continent aviation industry

    African Airlines lost Ksh1 trillion in 2020

    Equity land Ksh16.5 billion loan to support MSMEs

    Equity land Ksh16.5 billion loan to support MSMEs

    Electric Boda-Bodas’ Launched in Kenya

    Electric Boda-Bodas’ Launched in Kenya

    World Animal Protection calls for an End to wildlife trade

    World Animal Protection calls for an End to wildlife trade

    JKIA and Moi International Airport named the best in Africa

    JKIA and Moi International Airport named the best in Africa

    tvN – Korea’s top entertainment brand debuts on DSTV

    tvN – Korea’s top entertainment brand debuts on DSTV

    Samsung Named Top Global TV Manufacturer

    Samsung Named Top Global TV Manufacturer

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    17% of Kenyan Billionaires looking to buy a house in 2021

    17% of Kenyan Billionaires looking to buy a house in 2021

    Kenyan Firm awarded Most Innovative Community Developer 

    #OmokaNaAlma: This is how you get awarded Sh50,000 by Cytonn Real Estate

    Developing Countries Set To Lose Sh22 Trillion Due to COVID-19

    Commercial office rents fall 13pc in quarter 3 & 4 of 2020

    New Construction Technology to help NHC deliver affordable homes

    New Construction Technology to help NHC deliver affordable homes

    NCBA partners with Shelter Afrique to finance properties in 5 counties

    NCBA partners with Shelter Afrique to finance properties in 5 counties

    New Ksh350Million Commercial centre to be constructed in Athi River

    New Ksh350Million Commercial centre to be constructed in Athi River

    Greenpark Estate injects Ksh15M to its development

    Greenpark Estate injects Ksh15M to its development

    LG’s OLED Honoured at the Technology and Engineering Awards

    LG’s OLED Honoured at the Technology and Engineering Awards

    Kenya’s position as a Digital Media Hub gaining momentum

    Kenya’s position as a Digital Media Hub gaining momentum

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    Electric Boda-Bodas’ Launched in Kenya

    Electric Boda-Bodas’ Launched in Kenya

    Konza Technopolis, Israel to host Innovation Challenge

    Konza Technopolis, Israel to host Innovation Challenge

    TikTok releases H2 2020 Global Transparency Report

    TikTok releases H2 2020 Global Transparency Report

    OPPO Announces Global Partnership with Volkswagen

    OPPO Announces Global Partnership with Volkswagen

    2 Kenyans selected to create African Inspired stickers for New Chat App

    2 Kenyans selected to create African Inspired stickers for New Chat App

    Mobile Phones contribute to the realisation of UN SDGs – 2020 GSMA report says

    realme awards fans to Valentines through DaretoLove Campaign

    realme awards fans to Valentines through DaretoLove Campaign

    Opera launch its new Chat App to rival WhatsApp

    Opera launch its new Chat App to rival WhatsApp

    IoT predictions for 2021: Smarter tech will make better business

    IoT predictions for 2021: Smarter tech will make better business

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    OPPO Announces Global Partnership with Volkswagen

    OPPO Announces Global Partnership with Volkswagen

    World Engineering Day to Be Celebrated in Kenya

    World Engineering Day to Be Celebrated in Kenya

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    How NASA Technology Can Help Save The World’s Largest Shark

    After fight with US Authorities Huawei CEO now want talks with Biden

    After fight with US Authorities Huawei CEO now want talks with Biden

    Ford Vehicles to be powered by Android and Google apps in new deal

    Ford Vehicles to be powered by Android and Google apps in new deal

    Columbia Africa banks on primary and preventive healthcare to grow market share

    Columbia Africa banks on primary and preventive healthcare to grow market share

    DHL Express Named Best Employer in The World

    DHL Express Named Best Employer in The World

    Meet the founder of Safari Doctors Umra Omar

    Meet the founder of Safari Doctors Umra Omar

    Kenya to receive Ksh 1 billion from Google for economic recovery

    Kenya to receive Ksh 1 billion from Google for economic recovery

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    ACCA calls for a more inclusive approach to economic recovery

    ACCA calls for a more inclusive approach to economic recovery

    Hennessy launches new initiative to support bartenders in Kenya

    Hennessy launches new initiative to support bartenders in Kenya

    High impact enterprises in Africa rewarded

    High impact enterprises in Africa rewarded

    How much YouTube pays influencers for 100,000, 1 million, and 150 million views

    How much YouTube pays influencers for 100,000, 1 million, and 150 million views

    851 million was not lost Embu County maintains

    851 million was not lost Embu County maintains

    Covid-19 brings out the resilience of Kenya’s flower industry

    Covid-19 brings out the resilience of Kenya’s flower industry

    Trouble at Britam as top executives face sack one month after new CEO takes office

    Trouble at Britam as top executives face sack one month after new CEO takes office

    Citibank establishes programme to support women owned businesses

    Citibank establishes programme to support women owned businesses

    Opinion: Now is The Time to Redeem the Nursing Profession

    Opinion: Now is The Time to Redeem the Nursing Profession

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      Trouble at Britam as top executives face sack one month after new CEO takes office

      Trouble at Britam as top executives face sack one month after new CEO takes office

      Citibank establishes programme to support women owned businesses

      Citibank establishes programme to support women owned businesses

      Equity land Ksh16.5 billion loan to support MSMEs

      Equity land Ksh16.5 billion loan to support MSMEs

      Safaricom PLC Announces A 14.4 Per Cent Increase In Half-year Net Profit

      Safaricom cracks whip on rogue MPESA agents

      Bill in parliament seeks to have CBK regulate Mobile lenders

      Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

      Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

      DTB Bank set to shut down 6 branches

      DTB Bank set to shut down 6 branches

      Secure your future by saving with Metropolitan National Sacco

      Housing Finance launches new money transfer service

      Housing Finance launches new money transfer service

    • Insurance
      Trouble at Britam as top executives face sack one month after new CEO takes office

      Trouble at Britam as top executives face sack one month after new CEO takes office

      AAR Insurance embrace paperless model with new mobile app

      AAR Insurance embrace paperless model with new mobile app

      Minet feted Insurance Broker of the Year

      Minet feted Insurance Broker of the Year

      Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

      Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

      Pension Schemes Maintain Positive Performance in Q4 of 2020

      Pension Schemes Maintain Positive Performance in Q4 of 2020

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      DigiTrust: ICEA Lion Group bets on technology in the rewarding money market field

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      ICEA Lion Life appoints a new CEO

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      Exposed: Insurance Company on The Spot for Fruatrating clients

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      Octagon feted in 2020 World Pension Summit Innovation Awards

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      Opinion: Now is The Time to Redeem the Nursing Profession

      Opinion: Now is The Time to Redeem the Nursing Profession

      IoT predictions for 2021: Smarter tech will make better business

      IoT predictions for 2021: Smarter tech will make better business

      KRA Goes After Rich Individuals, Firms Over Sh250 Billion

      Digital Services Tax a desperate move caused by bad governance

      OPINION: Managing the end-of-life of products to accelerate a circular economy in Kenya

      OPINION: Managing the end-of-life of products to accelerate a circular economy in Kenya

      Why Digital Services Tax is a retrogressive policy

      Why Digital Services Tax is a retrogressive policy

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      How Citizen TV Became The Most Watched in Kenya

      This is the new Safaricom logo

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      OPINION: Why Safaricom’s Fuliza is a rip off!

      OPINION: Conserve Nature Even as you Work to Achieve SDGs

      OPINION: Conserve Nature Even as you Work to Achieve SDGs

Kenyan Business Feed
  • Home
  • News
    OPINION: Why Europe wants Africa to end crop protection in case science one day shows it’s harmful

    OPINION: Why Europe wants Africa to end crop protection in case science one day shows it’s harmful

    Family Bank Ink Fodder Financing Deal With Dairy Farmers

    Family Bank Ink Fodder Financing Deal With Dairy Farmers

    Hennessy launches new initiative to support bartenders in Kenya

    Hennessy launches new initiative to support bartenders in Kenya

    High impact enterprises in Africa rewarded

    High impact enterprises in Africa rewarded

    ‘Peace more powerful than war’, Pope Francis says in Iraq

    ‘Peace more powerful than war’, Pope Francis says in Iraq

    ABSA Group Deputy CEO dies of COVID-19 complications

    KenGen Shareholders to Get Sh1.65B Dividend Payout

    KenGen Supports Employees with a Return-to-Work Roadmap

    How much YouTube pays influencers for 100,000, 1 million, and 150 million views

    How much YouTube pays influencers for 100,000, 1 million, and 150 million views

    Consulting firm IPE Africa rebrands, appoints new country head

    Consulting firm IPE Africa rebrands, appoints new country head

  • Markets
    Hennessy launches new initiative to support bartenders in Kenya

    Hennessy launches new initiative to support bartenders in Kenya

    Mitumba trade employs over 2 million Kenyans new report reveals

    Mitumba trade employs over 2 million Kenyans new report reveals

    African Airlines Association call for support measures to rescue continent aviation industry

    African Airlines lost Ksh1 trillion in 2020

    Equity land Ksh16.5 billion loan to support MSMEs

    Equity land Ksh16.5 billion loan to support MSMEs

    Electric Boda-Bodas’ Launched in Kenya

    Electric Boda-Bodas’ Launched in Kenya

    World Animal Protection calls for an End to wildlife trade

    World Animal Protection calls for an End to wildlife trade

    JKIA and Moi International Airport named the best in Africa

    JKIA and Moi International Airport named the best in Africa

    tvN – Korea’s top entertainment brand debuts on DSTV

    tvN – Korea’s top entertainment brand debuts on DSTV

    Samsung Named Top Global TV Manufacturer

    Samsung Named Top Global TV Manufacturer

  • Real Estate
    17% of Kenyan Billionaires looking to buy a house in 2021

    17% of Kenyan Billionaires looking to buy a house in 2021

    Kenyan Firm awarded Most Innovative Community Developer 

    #OmokaNaAlma: This is how you get awarded Sh50,000 by Cytonn Real Estate

    Developing Countries Set To Lose Sh22 Trillion Due to COVID-19

    Commercial office rents fall 13pc in quarter 3 & 4 of 2020

    New Construction Technology to help NHC deliver affordable homes

    New Construction Technology to help NHC deliver affordable homes

    NCBA partners with Shelter Afrique to finance properties in 5 counties

    NCBA partners with Shelter Afrique to finance properties in 5 counties

    New Ksh350Million Commercial centre to be constructed in Athi River

    New Ksh350Million Commercial centre to be constructed in Athi River

    Greenpark Estate injects Ksh15M to its development

    Greenpark Estate injects Ksh15M to its development

    LG’s OLED Honoured at the Technology and Engineering Awards

    LG’s OLED Honoured at the Technology and Engineering Awards

    Kenya’s position as a Digital Media Hub gaining momentum

    Kenya’s position as a Digital Media Hub gaining momentum

  • Tech
    Electric Boda-Bodas’ Launched in Kenya

    Electric Boda-Bodas’ Launched in Kenya

    Konza Technopolis, Israel to host Innovation Challenge

    Konza Technopolis, Israel to host Innovation Challenge

    TikTok releases H2 2020 Global Transparency Report

    TikTok releases H2 2020 Global Transparency Report

    OPPO Announces Global Partnership with Volkswagen

    OPPO Announces Global Partnership with Volkswagen

    2 Kenyans selected to create African Inspired stickers for New Chat App

    2 Kenyans selected to create African Inspired stickers for New Chat App

    Mobile Phones contribute to the realisation of UN SDGs – 2020 GSMA report says

    realme awards fans to Valentines through DaretoLove Campaign

    realme awards fans to Valentines through DaretoLove Campaign

    Opera launch its new Chat App to rival WhatsApp

    Opera launch its new Chat App to rival WhatsApp

    IoT predictions for 2021: Smarter tech will make better business

    IoT predictions for 2021: Smarter tech will make better business

  • World Business
    OPPO Announces Global Partnership with Volkswagen

    OPPO Announces Global Partnership with Volkswagen

    World Engineering Day to Be Celebrated in Kenya

    World Engineering Day to Be Celebrated in Kenya

    How NASA Technology Can Help Save The World’s Largest Shark

    How NASA Technology Can Help Save The World’s Largest Shark

    After fight with US Authorities Huawei CEO now want talks with Biden

    After fight with US Authorities Huawei CEO now want talks with Biden

    Ford Vehicles to be powered by Android and Google apps in new deal

    Ford Vehicles to be powered by Android and Google apps in new deal

    Columbia Africa banks on primary and preventive healthcare to grow market share

    Columbia Africa banks on primary and preventive healthcare to grow market share

    DHL Express Named Best Employer in The World

    DHL Express Named Best Employer in The World

    Meet the founder of Safari Doctors Umra Omar

    Meet the founder of Safari Doctors Umra Omar

    Kenya to receive Ksh 1 billion from Google for economic recovery

    Kenya to receive Ksh 1 billion from Google for economic recovery

  • KBF
    • All
    • Agribusiness
    • Banking
    • Insurance
    • Manufacturing
    • Opinion
    ACCA calls for a more inclusive approach to economic recovery

    ACCA calls for a more inclusive approach to economic recovery

    Hennessy launches new initiative to support bartenders in Kenya

    Hennessy launches new initiative to support bartenders in Kenya

    High impact enterprises in Africa rewarded

    High impact enterprises in Africa rewarded

    How much YouTube pays influencers for 100,000, 1 million, and 150 million views

    How much YouTube pays influencers for 100,000, 1 million, and 150 million views

    851 million was not lost Embu County maintains

    851 million was not lost Embu County maintains

    Covid-19 brings out the resilience of Kenya’s flower industry

    Covid-19 brings out the resilience of Kenya’s flower industry

    Trouble at Britam as top executives face sack one month after new CEO takes office

    Trouble at Britam as top executives face sack one month after new CEO takes office

    Citibank establishes programme to support women owned businesses

    Citibank establishes programme to support women owned businesses

    Opinion: Now is The Time to Redeem the Nursing Profession

    Opinion: Now is The Time to Redeem the Nursing Profession

    • Agribusiness
    • Banking
      Trouble at Britam as top executives face sack one month after new CEO takes office

      Trouble at Britam as top executives face sack one month after new CEO takes office

      Citibank establishes programme to support women owned businesses

      Citibank establishes programme to support women owned businesses

      Equity land Ksh16.5 billion loan to support MSMEs

      Equity land Ksh16.5 billion loan to support MSMEs

      Safaricom PLC Announces A 14.4 Per Cent Increase In Half-year Net Profit

      Safaricom cracks whip on rogue MPESA agents

      Bill in parliament seeks to have CBK regulate Mobile lenders

      Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

      Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

      DTB Bank set to shut down 6 branches

      DTB Bank set to shut down 6 branches

      Secure your future by saving with Metropolitan National Sacco

      Housing Finance launches new money transfer service

      Housing Finance launches new money transfer service

    • Insurance
      Trouble at Britam as top executives face sack one month after new CEO takes office

      Trouble at Britam as top executives face sack one month after new CEO takes office

      AAR Insurance embrace paperless model with new mobile app

      AAR Insurance embrace paperless model with new mobile app

      Minet feted Insurance Broker of the Year

      Minet feted Insurance Broker of the Year

      Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

      Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

      Pension Schemes Maintain Positive Performance in Q4 of 2020

      Pension Schemes Maintain Positive Performance in Q4 of 2020

      DigiTrust: ICEA Lion Group bets on technology in the rewarding money market field

      DigiTrust: ICEA Lion Group bets on technology in the rewarding money market field

      ICEA Lion Life appoints a new CEO

      ICEA Lion Life appoints a new CEO

      Exposed: Insurance Company on The Spot for Fruatrating clients

      Exposed: Insurance Company on The Spot for Fruatrating clients

      Octagon feted in 2020 World Pension Summit Innovation Awards

      Octagon feted in 2020 World Pension Summit Innovation Awards

    • Manufacturing
    • Opinion
      Opinion: Now is The Time to Redeem the Nursing Profession

      Opinion: Now is The Time to Redeem the Nursing Profession

      IoT predictions for 2021: Smarter tech will make better business

      IoT predictions for 2021: Smarter tech will make better business

      KRA Goes After Rich Individuals, Firms Over Sh250 Billion

      Digital Services Tax a desperate move caused by bad governance

      OPINION: Managing the end-of-life of products to accelerate a circular economy in Kenya

      OPINION: Managing the end-of-life of products to accelerate a circular economy in Kenya

      Why Digital Services Tax is a retrogressive policy

      Why Digital Services Tax is a retrogressive policy

      How Citizen TV Became The Most Watched in Kenya

      How Citizen TV Became The Most Watched in Kenya

      This is the new Safaricom logo

      Fail or win? Mixed Reactions over Safaricom’s new logo

      After fuliza, Safaricom introduces another way to borrow money

      OPINION: Why Safaricom’s Fuliza is a rip off!

      OPINION: Conserve Nature Even as you Work to Achieve SDGs

      OPINION: Conserve Nature Even as you Work to Achieve SDGs

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Coronavirus cripples operations in the world’s biggest car plant Hyundai

by Kenyan Business Feed
February 7, 2020
in News, World, World Business
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The most productive car factory in the world fell quiet on Friday as South Korea’s Hyundai suspended operations at its giant Ulsan complex, hamstrung by a lack of parts with the coronavirus outbreak crippling China’s industrial output.

The five-plant network can make 1.4 million vehicles annually, in a coastal location facilitating importing components and exporting cars globally.

But supply lines are crucial in an ever more interconnected worldwide economy and the coronavirus outbreak in China has seen Beijing order factories closed in several areas as it seeks to contain the epidemic.

As a result, Hyundai which with its affiliate Kia ranks as the world’s fifth-largest auto manufacturer has run out of the wiring harnesses that connect vehicles’ complex electronics.

It is having to suspend production at its factories across South Korea, putting 25,000 workers on forced leave and partial wages, healthy victims of the disease outbreak across the Yellow Sea.

“It’s a shame that I can’t come to work and have to accept a pay cut,” said an Ulsan production line staffer surnamed Park. “It’s a very uncomfortable feeling.”

The closures could be the first example of a phenomenon that rolls out around the world, analysts say.

The impact on Hyundai will be eye-watering, with analysts estimating a five-day South Korean shutdown to cost the firm at least six hundred billion won ($500 million).

Hyundai is not the only corporate casualty: Kia will suspend three plants for a day on Monday, the South Korean unit of French automaker Renault is considering stopping its factory in Busan next week, and Fiat Chrysler CEO Mike Manley told the FT his firm could be forced to halt one of its European factories.

Analysts warn of broader troubles if Beijing extends the Lunar New Year holiday further as the coronavirus which according to official figures has infected more than 31,000 people in China and killed 636 continues to spread.

“The biggest problem is that we don’t know how the outbreak in China will unfold,” said Cheong In-kyo, an economics professor at Korea’s Inha University.

“South Korean companies rely heavily on China for parts and components. The problem is even if just one part is missing, you can’t do anything.”

The disruption was only just beginning, he added, and warned it would spread beyond the auto sector.

“There is not a single category that is not manufactured in China.”

The People’s Republic is the world’s biggest exporter of goods, with the US by far its largest trading partner.

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Exports to the US from China and Hong Kong combined many goods are shipped via the financial hub totalled more than $450 billion last year, followed by Japan with more than $150 billion. South Korea and Vietnam also both imported goods worth more than $100 billion from the pair.

“China has become an integral part of the global manufacturing supply chain, accounting for about one-fifth of global manufacturing output,” said Mark Zandi, chief economist at Moody’s Analytics.

Its neighbours will be hit by supply chain effects first, he said, naming Taiwan and Vietnam, followed by Malaysia and Korea.

The effects in the US would be delayed by the length of the supply lines, said Kristin Dziczek of the Center for Automotive Research in Ann Arbor, Michigan, but there would be secondary impacts on parts from other overseas markets built with Chinese items.

Automakers and suppliers were “evaluating and planning how to navigate the disruptions”, she said. “But there is no capacity the size of China sitting idle waiting to fill in the gaps and it’s difficult to move quickly in this environment when everyone is impacted.”

The global car industry was plunged into turmoil when a single Renesas Electronics factory in Japan making a vital and widely-used microcontroller was put out of action by the 2011 Fukushima earthquake.

Supply lines have since become much more diversified, analysts say.

“Car manufacturers have a system of multiple sourcing because the risk would be too big to have only one supplier in one place for a particular part,” said Ferdinand Dudenhoeffer, director of Germany’s Center Automotive Research.

It was standard for parts to be provided by “at least two different suppliers”, he said, adding that as part providers tended to be in the same region as the vehicle assembly line, “the car industry in Europe or America is much less exposed to a Chinese risk than Asian countries like Korea or India”.

But sourcing wiring harnesses from three different companies failed to protect Hyundai’s South Korean plants.

“We should have more diversified suppliers,” said production worker Park. “It’s a shame that there is nothing we can do at this point because we are so reliant on one country.”


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]

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