Osaka Gas, Kobe Steel Tally Losses After Massive Quake
Osaka Gas Co. said Monday it will lose 21 billion yen, or about $209.7 million, due to damages and lost sales from last week’s devastating earthquake near the western port city of Kobe.
Also, Kobe Steel Ltd. said four buidings at its Kobe headquarters collapsed in the quake and probably can’t be repaired. And Toyota Motor Corp. said all 12 of its Japan plants are operating normally after a quake-related shutdown.
The Jan. 17 quake killed more than 5,000 people and destroyed more than 52,000 buildings. Damage estimates range from $30 billion to $100 billion.
Osaka Gas, Japan’s second-largest utility company, said it will lose 6 billion yen in sales and 15 billion yen in costs to repair damaged pipes and other facilities.
Kobe Steel said one of its steel plants in the affected area, the Kakogawa plant, has begun operating at about 40 percent of its normal level. The company expects its other area plant, Kobe Works, to remain shut for about a month.
To meet its supply obligations, Kobe Steel is asking other steelmakers to produce on its behalf and make up for the lost output.
Although Toyota’s Japanese plants were unaffected by the quake, Toyota closed them for part of last Thursday and all of Friday because shipments from two parts suppliers in the affected area were disrupted.