The new coronavirus which has been causing a sensation since last year-end is likely to affect the industrial gas business (as of February 3).

Wuhan, China where the new virus originated this time is a large industrial city having over 10 million citizens. The city is famous for the automobile industries into which many Japanese companies have advanced, and recently the electronics industry also is growing remarkably as seen in the on-going large-scale investments in the city to YMTC (3DNAND flash memory), BOE (10.5 generation liquid crystal display) and China Star (6th generation organic electroluminescence display).

Japanese gas manufacturers are also selling gases for the city. Iwatani’s local subsidiary Wuhan Iwatani Commercial Trade has a business base in the city and Showa Denko’s local corporation Shanghai Showa Chemicals has also a branch office in the city.

To store and distribute gases, both of the local companies use on lease the warehouse from Wuhan Hengjidaxin International Chemical Storage Co. Ltd. located inside the Wuhan Chemical Industry Complex.

The other specialty gas manufacturers which have no local warehouse seem to distribute gases from Shanghai to the city by long-distance transportation. It is feared that the supply of gases may be cut if the new coronavirus problem at this time is prolonged. Incidentally as the virus trouble rose fully in progress during the Lunar New Year (Spring Festival), many local companies stopped their business activities but the electronics companies like YMTC continued their operation with a decreased workforce. It was because restarting operations of the semiconductor or LCD lines would take a great deal of time once they have stopped. Anyway, specialty gases are kept consumed during such a time.

The people concerned said, “Taking YHTC for example, a lot for about two weeks has been stocked for Spring Festival.” It seems no shortage will occur for the time being, but there will be a problem after then.

On January 27, the Government of China announced to extend the Lunar New Year Holiday until February 2 instead of the 30th of January. Furthermore, the Shanghai Municipal Government noticed to the companies in the city to take measures to extend non-operation days up to February 9.

It has affected the unloading schedule at the Port of Shanghai, causing the cancellation of scheduled sailing of a ship loaded with specialty gases for export from Japan. There are lots of problems also in the logistics field because the Hubei Province blocked the entrances and toll-gate of highways in the province. In the central area of Wuhan City all the traffic of ordinary vehicles has been banned. Although some limited part of the traffic is allowed, the local transport companies have already tended to reject a transportation order for the city of Wuhan. There seems to be no way to avoid influences to the logistics of gases.

Iwatani and SDK already localized are taking safety measures for their employees. In case of Iwatani, Wuhan Iwatani Commercial Trade has directed one employee to return to Japan temporarily. Shanghai Showa Chemicals Wuhan Branch having no Japanese staff-member has prohibited the local staff-members to commute to the office.

As the case coincided with the Spring Festival season, the influence seems to have stayed at the lowest limit, but the patients have spread to all provinces and autonomous regions over China. Now that there are some infected persons also in Japan, the influence is spreading over the world now, and has turned out to appear to be pandemic now.

On January 30, SEMI announced it would not hold SEMICON Korea scheduled to open from February 5 to 7 on the ground of possible spread of infection of the new coronavirus. The situation is getting more serious.