Earthquake in Japan
Statement from the Management of Tianma Group dated March 18, 2011
The Impact of Japan’s Earthquake on Tianma’s LCD Business and our Countermeasures
Dear Valued Customers,
On March 11, 2011, a strong and devastating earthquake (9.0 on Richter scale) hit Japan and induced severe Tsunami, causing major damages throughout the country. The disaster profoundly affected the living conditions and the economy of the Japanese people. Tianma Group would like to express our deepest condolences to the people of Japan.
As an ongoing effort, Tianma will continue to update the status on the effect of LCD supply chain and our countermeasures to support our customers to the fullest. We thank you in advance for your understanding and support.
Until now, in addition to the immediate damage caused by the earthquake and tsunami, the depth and comprehensiveness of the full effects are still uncertain due to the subsequent chain reaction of aftershocks, nuclear power plant leakage, power shortage/interruption, and damages to the transportation infrastructures.
As you may know, our key raw materials for Tianma’s LCD products are from Japan, Taiwan and Korea. Most of our Japanese suppliers are far away from the earthquake disaster zone, so their employees and equipments are not directly affected at this moment. However, the indirect effects present itself at a later date and we are still evaluating the full potential impact, for both short and long term effects.
Tianma have implemented these immediate plans as a countermeasure for possible uncertainties and effects, which may occur in the near future:
1) Build up safety stocks for key raw materials;
2) Prepare in advance for long lead-time key components;
3) Evaluate and qualify alternative suppliers as backup;
4) Expedite the internal qualification process for key materials.
During this difficult time, we will do our best to continue to provide you with quality products and services. In the meantime, we sincerely hope to get your support and cooperation on the following areas:
a) Expedite and place your POs for the next 2-3 months, as the expected standard lead-time may increase;
b) Provide your rolling forecast for the next 3-12 months, in order for Tianma to prepare more resources from our partnered suppliers and help shorten the lead-time;
c) For some key components with supply shortage, Tianma will allocate R&D and fabrication resources to recommend and qualify alternative components. In this regards, we hope you can also expedite the re-qualification/re-approval process on your side for any new component change notice.
We sincerely hope in work together for a common goal, we can minimize any losses and impact from the tragedy to your business. If you have any questions, please kindly contact our local Tianma Sales Manager and we will put forth our best effort to support you.
Best regards,
Xu Ouyang
VP of Sales and Marketing
Tianma Group
Tianmas Statement dated March 18, 2011 as PDF [40 KB]
