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Hundreds are dead after the worst earthquake in generations struck off the northeast coast of Japan on Friday. The 8.9-magnitude quake rocked the country, sending cars off bridges and causing numerous buildings in the area to collapse while causing several tsunamis that essentially washed away entire parts of the island nation. The following aftershocks, which were only slightly weaker than the earthquake itself, were felt throughout the country, causing even more damage and death.
Companies there have evacuated and closed plants in the aftermath of the world’s fifth-largest earthquake since 1900. Because Japan is the destination of so many global businesses, the economic effect of the earthquake will be felt throughout the world. From the Wall Street Journal:
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Volvo: The automobile company was among the worst hit. Its main facility in Japan that produces heavy-duty trucks was forced to halt production. Volvo employs 10,000 people in Japan.
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Daimler: One of the company’s facilities in Kawasaki was slightly damaged. Production is continuing with all employees accounted for.
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Nestle: The Swiss food giant has reported damage to two of its buildings, one of which was closed and production halted. The company says all employees are safe and accounted for.
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GlaxoSmithKline: Operations at one of its manufacturing plants is suspended for several days as damage is assessed.
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Procter & Gamble: A company spokesperson has reported that the majority of the consumer product company’s employees have been accounted for. It has suspended operations at its fabric care products plant.
- Autoliv: The world’s biggest producer of car safety products reported that it was forced to halt operations at one of its plants due to infrastructure damage.
Some telecom companies are also reporting damage to underseas cables.
An official from Chunghwa Telecom, who asked not to be named, said the affected cable belongs to the Asia Pacific Cable Network 2, which is owned by a consortium of 14 telecom operators led by AT&T Inc.
Though the emotional effects of such a devastating natural catastrophe will be felt for years to come, it is hoped that the economic effects won’t be so long-lasting. It’s hard to be optimistic when you see the damage, however. Below is a frightening video of the earthquake and tsunami as it unfolds.
Risk Management Magazine and Risk Management Monitor. Copyright 2012 Risk and Insurance Management Society, Inc. All rights reserved.
