Subaru to Suspend 2 Aircraft Parts Plants in Japan

Economy

Tokyo, April 17 (Jiji Press)--Japanese automaker Subaru Corp. <7270> said Friday it will suspend production at two aircraft parts plants in Aichi Prefecture in line with a production halt at U.S. aircraft giant Boeing Co.

Subaru's Handa and Handa West plants in the central Japan prefecture will stop production from Monday to May 1.

The facilities manufacture center wing boxes. It has become difficult to export the product to Boeing, which is suspending operations at a plant in the U.S. state of South Carolina, Subaru officials said.

On Monday, Subaru stopped paying 5,500 workers at a vehicle plant in the U.S. state of Indiana, which has been suspended since late March. Its employment contracts with the workers will remain in place, the officials added.

Subaru aim to resume operations there on May 11. The company is asking the workers to apply for subsidies for those put on unpaid leave.

[Copyright The Jiji Press, Ltd.]

Jiji Press