Shanghai to restart production, smooth logistic hurdles

Shanghai is on track to resume production and ensure smooth logistics following a COVID-related citywide lockdown since April 1, as the city moves to safeguard its industrial and supply chains.

A series of policies and measures, including a national directive to ensure smooth logistics and stabilize industrial and supply chains, are seen as key in reviving production and expediting recovery in China's commercial hub.

The country will identify a list of key industries and enterprises engaged in foreign trade in fields such as automobiles, integrated circuits, consumer electronics, equipment manufacturing, agricultural supplies, food and medicine, said the 10-point circular published following the national teleconference on keeping industrial and supply chains stable, which was attended by Vice-Premier Liu He.

To overcome logistical barriers and boost traffic flow, the country will issue sufficient travel permits that can be recognized across the nation and make sure that nucleic acid test results within 48 hours can be used in different regions, the Ministry of Transport said on Monday after the directive's release.

More targeted measures have been issued in Shanghai over the weekend, with local authorities publishing detailed plans to help restore operations in key manufacturing sites.

Major enterprises in integrated circuits, automobiles, equipment manufacturing and biomedicines must submit plans regarding prevention of the spread of the virus before they are given the green light to resume operations in closed-loop management, the Shanghai Commission of Economy and Informatization said on Saturday.

Regarding logistics management and the storage of epidemic prevention materials, the guidelines proposed that special routes and fixed sites be set up for production and living materials to enter the factory area, and they should be isolated from other areas.

Supply vehicle drivers and passengers are required to enter the factory area in strict accordance with epidemic prevention requirements.

The notice identified 666 manufacturers to resume production, in line with an early directive from the Ministry of Industry and Information Technology to help key industries get back to work.

SAIC Group kicked off "stress testing" for work and production resumption on Monday, targeting personnel, supply chain and logistics provisions, closed-loop production management, and epidemic prevention measures.

Multinational manufacturers, including 3M, BASF and Bosch said some of their production sites remained operational even at the beginning of the lockdown, with closed-loop management already in place to ensure orderly and virus-free manufacturing.

"With the support of government, we are also making preparations for other production resumption, developing a comprehensive plan to resume work and production," United States conglomerate 3M said in a statement on Monday.

German chemicals giant BASF said it is "actively organizing transportation capacity with logistics service providers for early recovery".

"We have been making every effort to overcome challenges, including raw material supply issues, logistic disruptions and labor shortages, to maintain supply and business continuity for our customers," said Jeffrey Lou, president and chairman of BASF Greater China.

Ai Zhouping, president of Heraeus Greater China, called for smoother inner-city and intercity transportation of products and raw materials, as well as daily supplies. He suggested the orderly flow of personnel, with employees fulfilling health requirements, being free to travel between plants and their homes.

"We are already on course to complete several key projects, but the sudden lockdown has hindered progress," Ai said. "We hope the government can greenlight these cases and allow us to wrap up the projects as soon as possible."

Zheng Xin and Zhong Nan in Beijing contributed to this story.