China heatwave prompts energy curbs for manufacturing hub, but repeat of power crisis unlikely
- Zhejiang province reported record electricity consumption on Monday before temperatures topped 42 degrees Celsius (107 degrees Fahrenheit) on Wednesday
- China experienced a nationwide power crunch last year, although a repeat is viewed as unlikely due to efforts by Beijing to ensure energy security
One of China’s major manufacturing hubs has restricted power usage for some factories amid a stifling heatwave and rising coal prices, raising concerns over a potential large-scale power outage that could further debilitate the struggling sector.
Polyester and textile factories, as well as printing and dyeing mills, across eastern China’s Zhejiang province received power rationing notices this week, according to textile industry news service CCF, following a meeting of the Zhejiang Energy Administration.
Zhejiang, one of China’s wealthiest provinces that neighbours Shanghai, reported record electricity consumption of more than 100 million kilowatts on Monday before temperatures topped 42 degrees Celsius (107 degrees Fahrenheit) on Wednesday.
Two polyester manufacturers confirmed to the Post on the condition of anonymity that they had been requested to restrict their power use starting from Tuesday, with one claiming the restrictions will be enforced until the end of August.
The first process and the last process are connected so the whole production chain will be affected if any one of the processes stops
“Our machines run 24 hours a day, every day of the year, nonstop, the first process and the last process are connected so the whole production chain will be affected if any one of the processes stops,” said a member of staff from one of the factories, who asked not to be named.
“Unlike the food industry or processing plants, for which the impact of intermittent production stoppages are minor and only involves the attendance of workers, [the power restriction] will affect all aspects of a company like ours, not only production, but also various costs and expenses plus manpower efficiency.”
Another polyester manufacturer said that it is already preparing to shut down some of its machines after receiving a power restriction notice on Monday.
“Although there are government subsidies for companies that cooperate with power restrictions, there is an impact on production,” said a member of staff, who also spoke on the condition of anonymity.