Tag Archives: Supplier

Nation’s largest water supplier declares drought emergency for all of Southern California

The nation’s largest water supplier has declared a drought emergency for all of Southern California, clearing the way for potential mandatory water restrictions early next year that could impact 19 million people.

The Metropolitan Water District of Southern California provides water to 26 different agencies that supply major population centers like Los Angeles and San Diego counties.

It doesn’t rain much in Southern California, so the district imports about half of its water from the Colorado River and the northern Sierra Nevada via the State Water Project — a complex system of dams, canals and reservoirs that provides drinking water for much of the state.

It’s been so dry the past three years that those water deliveries have hit record lows. Earlier this year, the district declared a drought emergency for the agencies that mostly depend on the State Water Project, which covers about 7 million people.

On Tuesday, the board voted to extend that declaration to cover all Southern California water agencies. They called on agencies to immediately reduce how much water they import. By April, the board will decide whether to make those cuts mandatory if the drought continues.

“Some Southern Californians may have felt somewhat protected from these extreme conditions over the past few years. They shouldn’t anymore. We are all affected,” said Gloria D. Gray, chair of the Metropolitan Water District’s Board.

State officials recently announced that water agencies like Metropolitan will only get 5% of their requested supplies for the start of 2023 due to lower reservoir levels. Some agencies may get a little bit more if its necessary for drinking, sanitation or other health and safety concerns.

The drought declaration comes as Colorado River water managers are meeting in Las Vegas to discuss growing concerns about the river’s future after more than two decades of drought. Scientists say climate change has contributed to sustained warmer and drier weather in the West, threatening water supplies. The river’s two largest reservoirs — Lake Mead on the Nevada-Arizona state line and Lake Powell on the Arizona-Utah border — are each about one-quarter full.

In California, despite a recent run of storms that have dumped heavy rain and snow in the Sierra Nevada and Central Valley, reservoirs are all well below average for this time of year.

“I think Metropolitan is being very proactive in doing this,” said Dave Eggerton, executive director of the Association of California Water Agencies. “It’s really the right thing to do.”

Up to 75% of all water used in Southern California is for irrigating yards and gardens. Water agencies dependent upon imported water from the state have had restrictions for much of the year, including limiting outdoor watering to just one day per week.

Last year, California Gov. Gavin Newsom called for residents and businesses to cut their water use by 15%. But since then, residents have reduced water use by just 5.2%, according to the State Water Resources Control Board.

Meanwhile, the Metropolitan Water District is investing in what could become the world’s largest water recycling system. Known as Pure Water, the initiative would recycle wastewater instead of sending it out into the ocean.

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Apple glass supplier Corning warns smartphone sales down 14%

When heated to a high temperature and then cooled, new chemical composition can change the way glass behaves. For Gorilla Glass, Corning narrows down the number of compositions to a few dozen, does more melting, then picks two or three candidates to test. It can take one to three years of testing to reach the one composition Corning ends up putting into the next generation of Gorilla Glass.

Corning

Corning stock fell over 4% on Tuesday morning after the company reported a weaker-than-expected outlook for the current quarter, blaming slow smartphone glass sales.

Corning makes a variety of different components and supplies many of the top electronics companies, like Samsung and Apple, which reports earnings this week amid concern over slowing consumer electronics sales. But there is optimism that slowing electronics sales won’t hurt the high-end of the market as much as less expensive devices.

Corning said it expected $3.55 billion in core, or adjusted, sales for the fourth quarter, short of a FactSet analyst consensus of $3.75 billion.

The company said that it would wait to see positive signs before telling investors about future recovery in the business.

In the quarter ending in September, Corning saw smartphone unit sales decline 14% on an annual basis, and tablet and notebook demand fall 17%, Corning CEO Wendell Weeks said on an earnings call. He added that annual automotive production is also behind its previously expected pace.

“So now the question is, when will the glass market recover?” asked Weeks. “My answer is we would like to see additional positive evidence before we guide a robust recovery in glass demand.”

Corning’s biggest business is making cables and components for fiber-optic systems, which grew 16% to $1.31 billion during the quarter.

But the company saw a 28% annual decline during the quarter to $686 million in sales in its displays technologies division, which makes glass for smartphones and other computer displays.

And the consumer electronics slowdown doesn’t seem to be getting better this year, Weeks said.

“We now expect smartphones to be down about 12% for the year, and we expect notebook and tablet demand to decline 15%,” Weeks said. “We expect the year-over-year decline in smartphones, notebooks and tablets to be greater in the second half than in the first half.”

Corning reported third-quarter sales of $3.49 billion, under FactSet’s consensus of $3.66 billion, and adjusted earnings per share of 51 cents, in line with expectations.

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Airbus slams sceptical supplier Raytheon over jet output

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PARIS, Sept 23 (Reuters) – Europe’s Airbus (AIR.PA) clashed on Friday with U.S. giant Raytheon Technologies (RTX.N) over plans for a record leap in jetliner output, after the industry’s largest contractor questioned whether a battered supply chain could keep up.

The world’s largest planemaker said it was sticking with a two-part plan to raise output by 50% from current levels in 2025 – a goal that would contribute to Airbus becoming the first civil planemaker to deliver 1,000 planes in a single year.

Chief Executive Guillaume Faury said demand was likely to outstrip supply for the most-produced medium-haul models where Airbus enjoys a lead over U.S. rival Boeing (BA.N).

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But speaking at the company’s first full-scale investor event for four years, he acknowledged worries from inflation to interest rates and said the wide-body recovery was less certain.

“We are in a period where things are accelerating; we have multiple crises to manage,” Faury said.

He talked of a possible share buyback as Airbus rebuilds cash depleted by what he called the “existential crisis” of COVID-19, but cautioned “we are not there yet”.

Airbus shares floated in and out of positive territory and by mid-afternoon were up 0.4%.

A travel bounce-back outside China has seen demand for medium-haul A320neo and Boeing 737 MAX jets recover faster than expected. But Airbus’ plans to build 75 A320neo-family jets a month in 2025, up from around 50 now, have met with some scepticism.

The head of Raytheon Technologies, which owns engine maker Pratt & Whitney, told a conference last week that Faury “might say rate 75, but we think rate 65 is doable” by 2025.

Faury called the comments “really unhelpful” and said engine makers were worried by the timing, not the number. “They believe in 75. I can be quoted because I checked,” he told investors.

Raytheon had no immediate comment.

Reuters reported this week Airbus had relaxed pressure on suppliers to commit to the 2025 deadline, leaving room for it to slip to 2026, but was sticking to targets for now. The company has not said when in 2025 it might hit the 75 goal. read more

The key, suppliers say, is when targets can be hit consistently.

“We will see when we plan to hit rate 75, in (20)25 hopefully. I am committed to (20)25. That’s probably something we will be communicating more precisely on at our full-year results,” Faury said on Friday.

A220 UPGRADE

Airbus meanwhile gave the strongest hint yet that it plans to launch a bigger version of its 110-to-130-seat A220 passenger jet but gave no clues about the decision’s timing.

A stretched version of the lightweight airplane makes a lot of sense, “but we don’t want to be right too early”, Faury said.

The A220 was developed with an eye on the main part of the jet market but Canada’s Bombardier struggled to keep up with the investments needed to displace Airbus and Boeing and sold its aerospace jewel to Airbus in 2018.

Airbus has faced higher-than-expected costs on the loss-making programme but believes it can break even by mid-decade.

An A220-500 would begin the process of replacing the 150-seat-plus A320neo, Europe’s aerospace cash-cow and a major battleground in the transatlantic war for sales with Boeing.

Airbus has seized a commanding lead in the main part of the single-aisle market, most recently through the larger A321neo, which finance chief Dominik Asam said would have an increasing proportion of sales.

Although Airbus was born as a producer of wide-body long-haul jets with the A300, which took flight 50 years ago next month, its biggest commercial success by far has been in workhorse single-aisle jets made popular by budget carriers.

Improvements in the largest single-aisle jets have eaten into the lower end of a market reserved for decades for wide-body jets like Boeing’s 747, 777 and 787 or the Airbus A350.

Faury said Airbus aimed to step up competition with Boeing in the wide-body market, starting with the new A350 Freighter. Experts say Boeing dominates air cargo and has so far outsold the A350 with its future 777X Freighter.

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Reporting by Tim Hepher; Editing by Edmund Blair and Mark Potter

Our Standards: The Thomson Reuters Trust Principles.

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China May oil imports from Russia soar to a record, surpass top supplier Saudi

Oil and gas tanks are seen at an oil warehouse at a port in Zhuhai, China October 22, 2018. REUTERS/Aly Song

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  • Russia overtakes Saudi as top supplier after 19-month gap
  • Russian imports nearly 2 mln bpd in May
  • Imports from Malaysia more than doubled in May yr/yr
  • Customs reports 3rd Iranian shipment since last Dec

SINGAPORE, June 20 (Reuters) – China’s crude oil imports from Russia soared 55% from a year earlier to a record level in May, displacing Saudi Arabia as the top supplier, as refiners cashed in on discounted supplies amid sanctions on Moscow over its invasion of Ukraine.

Imports of Russian oil, including supplies pumped via the East Siberia Pacific Ocean pipeline and seaborne shipments from Russia’s European and Far Eastern ports, totalled nearly 8.42 million tonnes, according to data from the Chinese General Administration of Customs.

That’s equivalent to roughly 1.98 million barrels per day (bpd) and up a quarter from 1.59 million bpd in April.

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The data, which shows that Russia took back the top ranking of suppliers to the world’s biggest crude oil importer after a gap of 19 months, indicates that Moscow is able to find buyers for its oil despite western sanctions, though it has had to slash prices.

And while China’s overall crude oil demand has been dampened by COVID-19 curbs and a slowing economy, leading importers, including refining giant Sinopec and trader Zhenhua Oil, have stepped up buying cheaper Russian oil on top of sanctioned supplies from Iran and Venezuela that allows them to scale back competing supplies from West Africa and Brazil. read more

Saudi Arabia trailed as the second-largest supplier, with May volumes up 9% on year at 7.82 million tonnes, or 1.84 million bpd. This was down from April’s 2.17 million bpd.

Customs data released on Monday also showed China imported 260,000 tonnes of Iranian crude oil last month, its third shipment of Iran oil since last December, confirming an earlier Reuters report.

Despite U.S. sanctions on Iran, China has kept taking Iranian oil, usually passed off as supplies from other countries. The import levels are roughly equivalent to 7% of China’s total crude oil imports. read more

China’s overall crude oil imports rose nearly 12% in May from a low base a year earlier to 10.8 million bpd, versus the 2021 average of 10.3 million bpd. read more

Customs reported zero imports from Venezuela. State oil firms have shunned purchases since late 2019 for fear of falling foul of secondary U.S. sanctions.

Imports from Malaysia, often used as a transfer point in the last two years for oil originating from Iran and Venezuela, amounted to 2.2 million tonnes, steady versus April but more than double the year-earlier level.

Imports from Brazil fell 19% from a year earlier to 2.2 million tonnes, as supplies from the Latin American exporter faced cheaper competition from Iranian and Russian barrels.

Separately, data also showed China’s imports of Russian liquefied natural gas (LNG) amounted to nearly 400,000 tonnes last month, 56% more than May of 2021.

For the first five months, imports of Russian LNG – from mostly Sakhalin-2 project in the Far East and Yamal LNG in Russian Arctic – rose 22% on the year to 1.84 million tonnes, according to customs data.

Below is the detailed breakdown of oil imports, with volumes in million tonnes:

(tonne = 7.3 barrels for crude oil conversion)

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Reporting by Chen Aizhu and Beijing newsroom; Editing by Tom Hogue and Muralikumar Anantharaman

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Apple display supplier could lose out on large iPhone 14 order after it was reportedly caught cutting corners

Chinese display manufacturer Beijing Oriental Electronics (BOE) could lose out on 30 million display orders for the upcoming iPhone 14 after it reportedly altered the design of the iPhone 13’s display to increase yield rate, or the production of non-defective products, according to a report from The Elec (via 9to5Mac).

Apple tasked BOE with making iPhone 13 displays last October, a short-lived deal that ended earlier this month when Apple reportedly caught BOE cutting corners on its displays. Sources close to the situation told The Elec that BOE had allegedly been changing the circuit width of the iPhone 13’s display’s thin-film transistors without Apple’s knowledge. (Did they really think Apple wouldn’t notice?).

This decision could continue to haunt BOE, however, as Apple may take the company off the job of making the OLED display for the iPhone 14 as well. According to The Elec, BOE sent an executive to Apple’s Cupertino headquarters to explain the incident and says it didn’t receive an order to make iPhone 14 displays. Apple is expected to announce the iPhone 14 at an event this fall, but The Elec says production for its display could start as soon as next month.

In place of BOE, The Elec expects Apple to split the 30 million display order between LG Display and Samsung Display, its two primary display providers. Samsung will likely produce the 6.1 and 6.7-inch displays for the upcoming iPhone 14 Pro, while LG is set to make the 6.7-inch display for the iPhone 14 Pro Max.

According to MacRumors, BOE previously only manufactured screens for refurbished iPhones. Apple later hired the company to supply OLED displays for the new iPhone 12 in 2020, but its first batch of panels failed to pass Apple’s rigorous quality control tests. Since the beginning of this year, BOE’s output has also been affected by a display driver chip shortage.

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Boeing clashes with key supplier ahead of Starliner spacecraft launch

The CST-100 Starliner is scheduled for a May 19 Florida launch atop an Atlas 5 rocket to the International Space Station, with Boeing aiming to show NASA that the spacecraft is safe to ferry astronauts to and from the orbiting outpost. Software failures cut short a similar 2019 uncrewed test flight.

The mission is a crucial step toward re-establishing Boeing as a viable rival to billionaire entrepreneur Elon Musk’s SpaceX, a drive complicated by Boeing’s disagreement with propulsion system supplier Aerojet, according to three people who spoke on condition of anonymity.

Chicago-based Boeing (BA (BA)) and El Segundo, California-based Aerojet (ARJD (AJRD)) are at odds over the cause of a problem involving fuel valves in the Starliner propulsion system that forced a postponement of a test flight last July, with the two companies faulting one another, the sources said.

The disagreement, which has not been reported before, comes at time when Boeing already is scrambling to emerge from successive crises that have hobbled its jetliner business and drained cash.

The Aerojet dispute is the latest illustration of Boeing’s struggles with Starliner, a program costing the company $595 million in charges since 2019. Facing fixed-price NASA contracts that leave Boeing with little wiggle room financially, the company has pressed forward with the Starliner test.

Boeing in a statement provided by a spokesperson to Reuters acknowledged for the first time that it ultimately intends to redesign Starliner’s valve system to prevent a repeat of the issue that forced last year’s test-flight postponement. The Boeing statement said that “we are working on short- and long-term design changes to the valves.”

Thirteen fuel valves that are part of a propulsion system that helps steer Starliner in space were discovered stuck and unresponsive in the closed position, prompting last year’s postponement.

The various technical setbacks have pushed Starliner’s first flight with people aboard into an unknown future, placing it far behind Musk’s SpaceX, whose Crew Dragon capsule, developed under the same NASA program as Starliner, has already flown five astronaut crews for the U.S. space agency.

NASA hopes Boeing can provide additional options to carry astronauts to the space station. NASA in March awarded SpaceX three more missions to make up for Boeing’s delays.

A team of Boeing and NASA engineers is in general agreement that the cause of the stuck valves involves a chemical reaction between propellant, aluminum materials and the intrusion of moisture from Starliner’s humid Florida launch site.

Aerojet engineers and lawyers see it differently, blaming a cleaning chemical that Boeing has used in ground tests, two of the sources said.

An Aerojet representative declined to comment.

‘ROOT CAUSE’

“Testing to determine root cause of the valve issue is complete,” Boeing said in its statement, and the work did not find the problems described by Aerojet.

NASA shares that view, Steve Stich, who oversees the Boeing and SpaceX crew programs for the space agency, told Reuters.

Boeing also said Aerojet did not meet its contractual requirements to make the propulsion system resilient enough to resist the problems caused by the chemical reactions.

Boeing last week wheeled Starliner back to the launch pad for a third time ahead of the upcoming launch, having swapped out the propulsion system for a new one with a temporary fix that prevents moisture from seeping into the valve section.

Boeing and NASA said they did not recreate any fully stuck valves during nine months of testing, instead measuring the degree to which valves struggled to open.

This approach was used in order to get Starliner back to the launchpad quickly, two of the sources said.

NASA, Boeing, Aerojet and independent safety advisers are set to meet this week to reach a final determination on the cause of the valve problems and decide whether the temporary fix will work.

Boeing officials privately regard Aerojet’s explanation for the faulty valves as a bid to deflect responsibility for the costly delay for Starliner and to avoid paying for a redesigned valve system, two of the sources said.

“It’s laughable,” one person involved in the joint Boeing-NASA investigation of the value issue said of Aerojet’s claim, speaking anonymously to discuss confidential supplier relations. “Getting a valve maker or propulsion system provider to write down, ‘Yeah, I screwed that up’ … that’s never gonna happen.”

After testing and software issues caused Starliner’s 2019 failure to dock at the space station, NASA officials acknowledged they had trusted Boeing too much when they decided to devote more engineering oversight to the newer SpaceX than the aerospace giant.

The feud with Aerojet is not Boeing’s first Starliner subcontractor quarrel. In 2017, Starliner had an accident during a ground test that forced the president of a different subcontractor to have his leg medically amputated. The subcontractor sued, and Boeing subsequently settled the case.

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iPhone supplier Pegatron suspends production at two factories in China

Pegatron announced Tuesday that it had suspended production at its facility in China’s largest city, as well as the nearby city of Kunshan, until further notice..

“The date of factory resumption is to be advised by the local government,” the company said in a statement, adding that it would work with officials to resume operations “as soon as possible.”

It was not immediately clear which types of manufacturing would be affected. Pegatron, a Taiwanese company that is known for making iPhones and other electronics, had previously been allowed to continue operating in Shanghai under a closed loop system that would keep essential workers in the factory and other personnel out — according to reports from multiple outlets, including Bloomberg.

The company declined to comment further.

It has joined a growing list of companies that have been disrupted by China’s latest surge of Covid-19 infections — and the resulting restrictions.
Shanghai, China’s financial hub and home to the regional headquarters of hundreds of international companies, has become the epicenter of China’s latest coronavirus outbreak, as well as the latest test of its “zero-Covid” strategy.
Since the latest wave started in March, the city has recorded more than 220,000 Covid cases, leading to strict stay-home orders and greater headaches for businesses.
The country’s auto industry has been particularly hard hit. This week, Volkswagen (VLKAF) said that its factories in Shanghai and Changchun, a Chinese manufacturing hub, had suspended production for weeks. Toyota (TM) reported a similar issue, saying its factory in Changchun had been shut for almost a month.
Tesla (TSLA), which has a Gigafactory in Shanghai, has also been forced to pause production since late March, according to Reuters. The company did not respond to a request for comment from CNN Business.
On Saturday, electric vehicle maker Nio (NIO) said it had temporarily halted manufacturing, too, describing how its suppliers across China had “suspended production one after the other” due to pandemic-related disruptions in recent weeks.
Even before Pegatron’s announcement, Apple (AAPL) was having to deal with similar snags in its supply chain. Last month, Foxconn, its other big Taiwanese manufacturer, suspended operations in Shenzhen because of a lockdown in the city just north of Hong Kong.

— CNN’s Beijing bureau and Yong Xiong in Seoul contributed to this report.

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‘Rust’ armorer accuses supplier of selling her dummy ammunition with live rounds mixed in before deadly on-set shooting, lawsuit says

In the complaint filed Wednesday in the Second Judicial District Court in Bernalillo County, New Mexico, Gutierrez Reed accuses PDQ Arm and Prop, LLC. and its founder Seth Kenney of violation of trade practices, false and deceptive product labels, and false and material misrepresentations after, Gutierrez Reed alleges, Kenney sold her a cache of dummy ammunition with live rounds mixed in.

Hutchins was fatally shot October 21 by actor Alec Baldwin during rehearsal for a scene in the movie being filmed at the Bonanza Creek Ranch outside Santa Fe. Director Joel Souza was injured in the shooting.

The scene was going to show Baldwin cocking the gun, and he and Hutchins were going over how she wanted to position his hand right before the gun went off, the actor told ABC last month.

Kenney and his company “sold, distributed, and advertised its props as dummy ammunition and not live rounds,” the complaint said. “Hannah relied upon and trusted that Defendants would only supply dummy prop ammunition, or blanks, and no live rounds were ever to be on set.”

The complaint includes allegations that Kenney attempted to “direct” the criminal investigation into Hutchins’ death in a way that cast blame on Gutierrez Reed and included screenshots of text messages between the pair showing they had a “fallout.”

Gutierrez Reed also includes allegations in the suit that insinuate wrongdoing by several others involved in the set, including Baldwin, prop master Sarah Zachry and assistant director Dave Halls.

CNN has reached out to Zachry, PDQ Arm and Prop. LLC., Kenney, Baldwin, and an attorney for Halls for comment but did not immediately hear back.

Gutierrez Reed wasn’t called to re-inspect the gun, lawsuit says

The complaint includes a detailed timeline of Gutierrez Reed’s account of the day of the shooting, including the moments leading up to the church scene when the weapon fired.

Attorneys for Gutierrez Reed have previously theorized in interviews that there was “sabotage” behind the fatal discharge, and in the suit, they note a period of about five minutes when the gun was left unattended by Zachry and an assistant who had been tasked with watching it.

In the suit, Gutierrez Reed says she loaded six rounds into the gun herself and inspected the weapon in front of Halls, showing him the chamber loaded with what she believed were dummy rounds. Halls, in her account, said he would be “sitting in” with the gun, “meaning the gun wasn’t going to be used at all since this wasn’t a scene or rehearsal.”

Gutierrez Reed says Halls broke protocol by not calling her back to set when Baldwin arrived and took possession of the gun. The complaint states that she asked Halls to let her know when Baldwin came back so she could re-inspect the weapon.

“Her point was that if plans were to change for use of the gun to be more than just ‘sitting in’ status, Hannah needed to be called back into the Church,” the complaint reads.

The complaint also claims Baldwin never responded to Gutierrez Reed’s request to attend a “cross draw training” on October 15, days before the shooting.

“Had Hannah been called back in, she would have re-inspected the weapon, and every round again, and instructed Baldwin on safe gun practice with the cross draw, as was her standard practice on set,” according to the complaint.

“Hannah would never have let Baldwin point the weapon at Halyna, as part of standard safe gun practices. Apparently, no one inside the Church stopped Baldwin from doing so, including AD Halls,” the suit says.

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Apple puts supplier Foxconn’s India plant on notice after protests

Men ride their motorbikes past a closed plant of Foxconn India unit, which makes iPhones for Apple Inc, near Chennai, India, December 21, 2021. REUTERS/Sudarshan Varadhan

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Dec 29 (Reuters) – Apple (AAPL.O) said it had placed its iPhone assembler Foxconn’s (2317.TW) plant in southern India on probation after both companies found that some remote dormitories and dining rooms used for employees did not meet required standards.

Apple did not detail what being on probation meant. When it placed the southern India plant of another supplier, Wistron Corp (3231.TW), on probation after unrest last year, it said it would not award the Taiwanese company new business until it addressed the way workers were treated.

The latest action comes on the heels of protests that erupted earlier this month after more than 250 women who work at the Foxconn plant in Sriperumbudur town, near the southern city of Chennai, and live in one of the dormitories, had to be treated for food poisoning.

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The plant, which employs some 17,000 people, was closed on Dec 18. Apple and Foxconn didn’t say when they expected it to reopen.

A spokesperson for Foxconn said on Wednesday that it was restructuring its local management team, taking immediate steps to improve facilities and added that all employees would continue to be paid while it makes necessary improvements to restart operations.

More than 150 employees at the factory were hospitalised for food poisoning, Reuters had reported on Dec. 18.

An Apple spokesperson said on Wednesday it had dispatched independent auditors to assess conditions at the dormitories “following recent concerns about food safety and accommodation conditions at Foxconn Sriperumbudur.”

Apple said it had found that some of the remote dormitory accommodations and dining rooms being used for employees did not meet its requirements and that it was working with the supplier to ensure a comprehensive set of corrective actions, adding that it will ensure its strict standards are met before the facility reopens.

Earlier this week, Reuters had reported that Foxconn as well as 11 of its contractors, including those who provide food and living facilities, were summoned for a meeting with the state government and that officials had asked Foxconn to review services provided to the workers, including power backup at the hostels, food and water.

The impact on Apple from the closure of the plant, which makes iPhone 12 models and has started trial production of the iPhone 13, is expected to be minimal, analysts have said. But the factory is strategic in the long term as Apple tries to cut its reliance on China’s supply chain amid trade tensions between Washington and Beijing.

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Reporting by Sayantani Ghosh, Sudarshan Varadhan in Chennai, Chandini Monappa in Bengaluru, Dawn Chmielewsk in Los Angeles and Stephen Nellis in San Francisco; Editing by Christian Schmollinger, Kenneth Maxwell and Raju Gopalakrishnan

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Saudi holds top oil supplier to China in October – customs data

Oil and gas tanks are seen at an oil warehouse at a port in Zhuhai, China October 22, 2018. REUTERS/Aly Song/File Photo

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BEIJING, Nov 21 (Reuters) – Saudi Arabia held its position as the biggest supplier of crude oil to China for an 11th month in a row in October, with volumes up 19.5% from a year ago, customs data showed on Sunday.

Saudi oil arrivals totalled 7.1 million tonnes, or 1.67 million barrels per day (bpd), data from the General Administration of Customs showed, which is 19.5% higher than 1.4 million bpd a year and compares with 1.94 million bpd in September.

Inflows from Russia, including pipeline oil, inched up by 1.3% from a year ago to 6.6 million tonnes last month, or 1.56 million barrels per day (bpd). That compared with 1.49 million bpd in September.

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The growth in Russian supplies, primarily of its flagship oil ESPO blend, followed China’s release of fresh import quotas in August and October that allowed independent plants to lift purchases of one of their favourite grades.

Still, China’s overall October crude oil imports fell to the lowest in three years amid Beijing’s broad cap on independent refiners’ imports. read more

Supplies from Brazil were down 53.2% from a year earlier, while those from the United States slumped by 91.8%.

Reuters reported China’s imports of Iranian oil have held above half a million barrels per day on average between August and October, as buyers judge that getting crude at cheap prices outweighs any risks from busting U.S. sanctions. read more

Most of these barrels were passed on as exports from Oman, the United Arab Emirates and Malaysia, weighing on competing supplies from Brazil and West Africa.

Official data has consistently shown China has imported zero oil from Iran or Venezuela since start of 2021, as national oil companies stayed on the sidelines on worries over U.S. sanctions.

Below lists the details with volumes in metric tonnes.

(crude conversion: tonne=7.3 barrels)

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Reporting by Aizhu Chen, Cheng Leng and Shivani Singh; Editing by Michael Perry

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