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Energy Shortage in China : ICAPE Group’s statement and solutions !

China is currently suffering from a lack of electricity. As most of the electronics manufacturers are located in China, this affects the production of printed circuit boards, technical parts, and the world economy. With more than 20 years in the industry working with multiple Asian factory partners, ICAPE Group analyzed the situation and set solutions to maintain its customer’s supply chain efficiency.

Energy Shortage in China

In China, the situation is worrying for most of the global economy players. The second-largest economic power on the planet is limiting its production of electricity due to a shortage of coal, the main source of energy in China, and new environmental standards to limit global warming. This situation comes in a period of recovery for the global economy that was opening up after the COVID 19 pandemic, and the consequences are starting to be felt. Analysts believe that the impact on the 4th quarter will be substantial and that this could limit global growth.

Energy Shortage in China

In production plants, the use of electricity is regulated. Some of our suppliers are impacted and lead times can increase up to one week. But ICAPE Group works with more than 80 factories for the production of PCBs and technical parts and arrangements are being studied to limit the impact of these restrictions such as a reorganization of production schedules, the use of generators to maintain important processes, and certain factories are not affected yet and still running at their full potential. Every day, ICAPE Group is closely monitoring the situation. With more than 250 employees at the headquarters in China, the French company is at the heart of the production sites with purchasing and quality departments entirely dedicated to this mission.

Energy Shortage in China

Excellent situational awareness is the key to anticipating and finding solutions. Thanks to its on-site teams, ICAPE Group is able to audit, analyze and make strategic decisions to reduce the impact of these scheduled power cuts. Since the beginning of 2021, ICAPE Group has also been working to extend its network of partners outside of China, with the addition of new factories in Asia and the Americas.
This limitation in production capacity comes at a time of strong demand worldwide but ICAPE Group has the capacity to use numerous leverages on technical and logistical solutions to contain the possible increase of production costs and supply of its customers.
In a process of transparency, ICAPE Group will inform its customers and prospects of each development in this situation.

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