The initial Japanese earthquake on the 11th of March was the catalyst for a number of events that have rocked Japan as well as the rest of the world. Aftershocks of this natural disaster are still being felt around the country, and intensified through two further quakes. While the focus has validly been on the nuclear threat, not only to people but also to food production throughout the north of the country, there is the ongoing construction issues that have yet to be fully appreciated.
Japan is one of the world leaders in technological advancements and construction. They have become the third largest economy largely due to this fact, but since the quake the economy has been in complete and utter turmoil. It should come as no surprise that due to the countries power economically and technologically many other nations are reliant on them for partnerships and trade.
The issues in Japan, although devastating for the country itself, is having a global impact on construction and economics. This week already the construction of a Korean liquid-crystal display (LDC) plant China is being stalled due to their reliance on Japanese made components. It was reported by Yonhap news that facilities for companies Nikon Instruments Inc., Hitachi Chemical Co., JX Nippon Mining & Metals Group and Cannon Inc. have been damaged in the earthquake, leaving a huge deficit in the market and halting the multi-million dollar Chinese based Korean plant.
Korean companies Samsung Electronics Co. and LG Display Co. had only recently been approved by China to build the $2.6 billion plant in their country. The LCD screen is out selling its predecessor the Plasma screen at an alarming rate, which will only increase over the next few years. The 7.5 generation LCD panel plant is to be constructed Shuzhou China, but the completion date is at yet unknown.
Samsung and LG make up 50% of the worlds LCD shares, with the construction of the new plant in Mainland China prophesized to make them the world leaders in this type of technology.
The losses to both Japanese and South Korean economies will surely be felt over the coming months while Japan re-constructs, although in the case of the ruined factories, stock options left after the quake are limited. More and more issue are coming to light as the world realizes how strongly it has been relying on Japan for products.
It has become apparent that this tragedy is no longer an issue simply involving Japan. With the contamination of food and loss of product stock the problems for the trade partners of Japan, and the Japanese economy are becoming more and more obvious. It must be noted that in the light of the human loss and ongoing nuclear threat this issue of halting construction may be unimportant, but the consequences this is having on a worldwide industry scale may not be able to be ignored for long. In the meantime, global construction will have to wait while Japan rebuilds and makes up for losses.
Image: as sourced from ecovelo.com