The heat wave in china August 2022 is the hottest in record for the last 60 years. The heat wave in china August 2022 has led to closure of Factories.
Factories will be closed for at least six days to counteract power shortage in the region.
Semiconductor and solar panel industries are currently power rationed which has become a major challenge in production.
Some of the companies that have been hit by the wave include the Apple (AAPL) supplier Foxconn and Intel (INTC).
According to analysts, the shutdown may increase the cost of raw materials as most factories responsible for raw material production are no longer operational.
Lithium mining hub plays a key role in raw material used in manufacture of car batteries.
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The heat wave in china August 2022 has also led to installation of air conditioners in residential houses and offices, which has increased power usage.
It has also led to decrease in water levels in dams, reducing the amount of hydro-electric power produced. The southwestern province, which is the key power provider has been affected by the wave.
One of the provinces in China, Sichuan, closed its production industries in “urgent” notice that was given by the provincial government.
In measures to reduce power consumption, a city in Sichuan, Luzhou, has ordered switching off of street lights during the night.
As the heat wave threatens, other Chinese provinces have urged locals to use power sparingly to match the national power grid.
Offices in China has been given an order to abort the lift services and increase their air conditioners to 260c.
The agricultural sector has also been affected with mores regions in china recording low agricultural produce. The effect may threaten food supply in the region.
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