Special Edition: Automotive Supply Chain Risk Digest #366

January 2017 - January 2024, by Elm Analytics

Dear Reader,

In this special edition of the Automotive Supply Chain Risk Digest, we take a moment to reflect on the lessons gleaned from the past seven years — a period marked by incidents that have starkly highlighted the fragility of our supply chains in the face of fires and explosions. These events, whether at our facilities or those of our suppliers, unveil the critical need for understanding our interconnected ecosystem.

Our industry's narrative is punctuated by moments that call for pause and reflection. For example, the prolonged impact of the Renesas fire in Japan amplified the fragility of the automotive semiconductor supply chain at a critical point coming out of the pandemic. It underscored how quickly technological dependencies can become chokepoints in times of crisis.

Our aim is not merely to recount these events but to learn from them. The transition to electric vehicles has ushered in a new era of dense energy storage through modern lithium-ion batteries. While these batteries are pivotal for the EV revolution, they also introduce new risks. Consider the December 2023 fire at General Motors' Factory Zero in Detroit, which resulted in well over $1M in damages. This event is not just a statistic; it's a clear call to reassess our protocols and response strategies.

This retrospective underscores the frequency and impact of such events within our industry. More importantly, we emphasize the opportunity to fortify our supply chains against future risks. By leveraging insights from past incidents and underwriter reports, we can enhance our resilience, safeguard lives, and ensure the continuity of our operations.

This digest goes beyond merely recounting past events; it is a call to action. Let us use the knowledge and strategies derived from these incidents to not only protect our assets but to create a safer, more resilient future for the automotive supply chain.

We would love to hear your ideas and thoughts. Please feel free to hit reply or call +1 (248) 660-9356 to drop us a line.

Together, let's turn these lessons into actionable strategies that reinforce our defenses, ensuring that our supply chains are not just efficient but robust and secure.

Best,

Nick Gaydos
Editor, Elm Analytics' Automotive Supply Chain Risk Digest

→ We've partnered with Aon to create a Property Risk Control Assessment that is accessible and easily deployed throughout your supplier network.

For those ready to take proactive steps towards safeguarding their supply chains, simply leave your contact info, and we will coordinate a time to meet with you.

Join us in our mission to elevate the safety and resilience of the automotive supply chain.

---

2024

1/30/2024 - A fire at General Motors' Factory Zero in Detroit in December resulted in over $1M in damages, raising concerns about battery fire protocols at the automaker's premier EV plant. Nearly 100 firefighters responded to the blaze, which was the eighth visit to the plant since summer. GM attributes the fire to a forklift accident, emphasizing ongoing efforts to improve internal protocols and employee safety. The incident highlights the challenges the EV industry faces, including the need for better safety measures and emergency response protocols as production increases. The risks associated with battery technology make it imperative to address these issues to ensure production is scaled safely.

2023

12/20/2023 - General Motors' Factory Zero EV plant in Detroit resumed production Wednesday after a fire on Tuesday halted operations. The fire may have been started by a forklift puncturing a container of battery materials, but the cause is still being investigated.

12/27/2023 - An explosion at a nickel-processing plant in Indonesia, owned by PT Indonesia Tsingshan Stainless Steel (ITSS), has resulted in 18 deaths, with dozens injured. The incident occurred during furnace repair work at the Morowali Industrial Park in Central Sulawesi. Preliminary investigations suggest the explosion was caused by residual slag from the furnace, under maintenance, coming into contact with flammable materials. The plant is part of a Chinese-funded industrial park, with Tsingshan Holding Group holding a majority stake. The accident follows previous safety concerns at the facility, including a fatal riot in January and a fire in June.

8/29/2023 - Kia's factory in Hwaseong, South Korea, has been temporarily halted due to a fire on the second floor of the plant's robot-operated painting line. The fire will delay the production of thousands of vehicles, including the K5, K8, and EV6. The plant is set to be suspended through September 6, with normal operations expected to resume afterward.

8/22/2023 - Toyota temporarily halted production at its Kolin factory in the Czech Republic due to a parts shortage caused by a fire at a local supplier. The factory produces the Aygo X mini crossover and the Yaris small hatchback. The production stoppage is from August 22 to 27, the second production stoppage this year. The plastics supplier Novares CZ Zebrak, whose production and storage facilities were destroyed by a fire, is suspected to be the affected supplier.

3/22/2023 - An explosion occurred at the INEOS Phenol chemical plant in Pasadena, Texas, injuring one person. The plant produces Cumene used to synthesize phenol. Phenol is then used to create polycarbonate for headlights, light guides, and lenses.

3/18/2023 - One worker was injured following an explosion and fire at OEM wheel supplier Dicastal North America in Greenville, Michigan, late last week. Any potential supply chain disruptions have yet to be determined.

3/2/2023 - Ford will restart production of its F-150 Lightning EV on March 13. Production stopped on February 4 after a fire occurred in a holding area while the pickup was charging.

2022

7/27/2022 - Three workers were hospitalized for injuries from an explosion at TimkenSteel's Faircrest plant in Ohio. A fire started in the melt shop area involving a furnace.

5/31/2022 - Last Saturday, a fire broke out at Rivian's plant in Normal, Illinois, after a battery pack caught fire in the testing area. There were no injuries, and production at the plant resumed on Sunday.

2021

12/22/2021 - GM restarted its Corvette assembly lines after a tornado damaged the facility. The Bowling Green, Kentucky plant sustained damage to the exterior and a roof fire. The company initially idled the plant and its 1.2k workers for nine days.

12/13/2021 - GM shut down its Bowling Green, Kentucky plant after a tornado started a fire early Saturday.

7/13/2021 - VW temporarily shut down production at its Chattanooga, Tennessee, assembly plant due to a fire. Some employees were treated for smoke inhalation, but nobody was seriously injured.

6/29/2021 - A fire briefly halted production at Faurecia's plant in Saline, Michigan, early this week. The first only caused minor damage to the roof, and no workers were injured.

6/14/2021 - A massive fire broke out at lubricant supplier Chemtool's plant in Rockton, Illinois, on Monday. No one was injured, but damage to the facility appears to be extensive.

4/8/2021 - An explosion at the OPC Polymers facility in Columbus has left eight people injured and one dead. Federal records show the company, a division of Yenkin-Majestic, has a history of safety violations.

4/2/2021 - BASF's Greenville, Ohio plant reported a smoking chemical tote. Hazmat crews and fire crews quickly contained the situation.

6/1/2021 - Renesas' fire-damaged plant in Naka, Japan, is running at 88% capacity. The automotive semiconductor manufacturer expects normal production levels in mid-June.

4/9/2021 - Renesas will restart production at its fire-shuttered facility next week. Press reports expect normal production levels to return in late June.

4/6/2021 - A March fire has Renesas temporarily moving automotive semiconductor production from its Saijo plant to Ehime. The company is also asking a Taiwanese semiconductor manufacturer to produce chips for it.

3/29/2021 - Renesas Electronics says that the damage caused by a fire at its Hitachinaka, Japan plant last month is worse than first thought. The company says that it will take at least a month to resume production there, but replacing damaged machines could take several months.

3/19/2021 - Renesas Semiconductor says their 300mm wafer line in Hitachinaka, Japan, will be shut down for at least a month after a fire near the cleanroom late last week.

2020

11/18/2020 - American Axle is closing its plant in Malvern, Ohio, that was gutted by a fire in September. The supplier said that the building's damage was too severe and that the structure was irreparable.

9/24/2020 - American Axle's Colfor Manufacturing plant in Malvern, Ohio, experienced a significant fire earlier this week. The supplier is still assessing the impact of the damage and coordinating plans to protect its customers' continuity of supply.

9/11/2020 - A fire broke out at Unimicron Technology in Kunshan, Jiangsu, China, and may halt production for up to four weeks. The printed circuit board factory supports 50 of Robert Bosch's products. Bosch "initiated an emergency response to coordinate parts supplies globally."

6/14/2020 - An explosion occurred at Honda's plant in Suzuka, Japan, and injured two employees early this week. The blast happened near an electrical power distribution board at the facility.

5/8/2020 - A fire broke out at Magnesium Elektron's magnesium alloy plant in Madison, IL, late last week. Officials said that while oil and trash burned during the incident, no magnesium was involved.

3/1/2020 - Tata Motors warned that both the COVID-19 outbreak and a fire at its supplier Varroc Lighting were affecting production.

2019

11/27/2019 - A fire that broke out at Faurecia's plant in Abrera, Spain, last week affected and halted production at Seat's vehicle assembly plant in Martorell, Spain. Faurecia supplies dashboards to Seat on a just-in-time basis.

10/22/2019 - Workers evacuated a chemical plant operated by Zschimmer & Schwarz in Milledgeville, Georgia, after a fire broke out earlier this week. Zschimmer & Schwarz manufactures chemical auxiliaries and specialties for cosmetics, clothing, construction, paints, varnishes, and automotive products.

10/1/2019 - Japan's Nippon Steel will shutdown its Kimitsu plant, and Nisshin's Kure works for at least six months. Typhoon Faxai damaged a smokestack used for gas processing at Kimitsu. A fire in August destroyed vital parts of the Kure works plant as well as extensive damage to a control room. The combined output lost is reported to be 200k tons of semi-finished steel products per month. Customers Bridgestone and Toyota have started to source products from alternate sources. They do not expect any impact on production.

7/26/2019 - A fire at GM's Saginaw Metal Casting Operations is currently under investigation. Although cleanup will take a few days, the production line is expected to be back online. The plant supplies GM's SUVs and midsize trucks.

7/9/2019 - A fire broke out at Ford's Axle plant in Sterling Heights, Michigan, earlier this week. The automaker says that there won't be any supply chain disruptions.

5/22/2019 - A small fire was reported at Toyota's plant in Georgetown, Kentucky, this week. The cause and damage were not reported.

2/24/2019 - A fire occurred at the General Motors Manufacturing Plant in Spring Hill, Tennessee. Contractors were removing two injection molding machines in an unoccupied area of the plant.

2/26/2019 - A massive fire broke out at a storage facility just outside plastic parts supplier US Farathane's facility in Auburn Hills, Michigan, this week. The company says they anticipate "minimal disruptions" to customer shipment schedules.

1/31/2019 - GM and FCA have halted operations at many of their manufacturing and non-manufacturing facilities in Michigan after a fire at a Consumers Energy facility forced natural gas usage reductions across the state. Ford has not closed any facilities but did lower temperatures at two plants to minimum levels and curtailed certain heat-intensive processes.

2018

11/30/2018 - Workers were evacuated when a fire broke out in a ventilation system at Green Tokai Co. The Brookville, Ohio, manufacturer produces injection molded parts and extrusions.

6/5/2018 - A fire broke out at the Kirchoff Automotive plant in Manchester, TN, on Wednesday evening. The fire started behind the building in a storage area, and as a result, the building itself sustained mostly heat and smoke damage as opposed to fire damage.

10/23/2018 - An explosion and fire have idled production at Meridian Lightweight Technologies' magnesium diecasting plant in Strathroy, Ontario, Canada. This is the second fire at a Meridian plant in the last six months, following the May fire at their facility in Eaton Rapids, Michigan.

5/11/2018 - It turns out that Meridian Magnesium Products has a history of recent safety violations leading up to the fire a couple of weeks ago. The plant has been cited for seven violations, including three serious ones, since early 2014.

5/6/2018 - Last week's fire at a Michigan supplier halted some operations at Mercedes-Benz's Vance, Alabama plant.

5/2/2018 - A fire broke out at the Meridian Magnesium Products plant in Eaton Rapids, Michigan, on Wednesday, injuring 2 workers and setting off a series of explosions. Around 150 workers were evacuated, but fortunately, no one was seriously injured.

4/30/2018 - Chin-Poon Industrial, a Taiwan-based PCB maker, suffered a deadly fire damaging two of its factories. The PCB maker specializes in automotive applications and estimates that 15% of its revenue will be affected by the disaster. There are two other older factories on the site that were not affected by the blaze.

4/6/2018 - A fire, destroying a storage building at Kasai North America's Prattville, Alabama plant, has been ruled an arson. The plastics facility produces interior trim parts.

1/26/2018 - A fire caused explosions at TMK Ipsco Tubular Corp's Koppel Steel Plant this past week. The cause of the fire at the Beaver Falls, Pennsylvania, facility has not been released. The plant, which produces billet, had not reported any injuries.

2017

5/15/2017 - A limited supply of isocyanates has reduced the amount of MDI (methylene diphenyl diisocyanate) available for use in insulation. Recticel, which suffered a fire earlier in the year, has cut production of its MDI insulation by 15%. Conditions are not expected to improve before July 2017.

4/25/2017 - Kawasaki Tennesee suffered a super-heated aluminum dust fire in a fan system in their Morristown, Tennessee plant.

4/24/2017 - Employees evacuated the FCA Toledo Assembly Complex on April 24, 2017, due to a fire.

6/19/2017 - Automotive News covers the recovery effort from the aftermath of the Anderton Castings factory fire (April 5, 2017). The disaster, which affected ZF's supply chains to Honda and FCA, started when a bottle of nitrogen fell into a cauldron of molten metal.

4/5/2017 - A fire at Anderton Castings destroyed 1/2 of the 142,000 sf facility, causing $5m in damage. The die-casting plant expects to be working in 2-4 weeks. No injuries were reported.

3/27/2017 - Audi halted production at its Ingolstadt, Germany, factory this week due to a parts shortage after a fire at a supplier that makes front wall cladding. Due to the halt, Audi will lose around 5,600 vehicles this week.

3/19/2017 - A fire broke out at the Aisin Automotive Casting Company in London, Kentucky, on Sunday.

3/16/2017 - Firefighters were called to the scene of an apparent explosion and chemical Reaction at Royal Adhesives & Sealants in South Bend, Indiana.

3/15/2017 - A "horrific" fire has destroyed the Muskegon Castings Corporation (Port City Group / Pace Ind.) foundry in Muskegon, MI. The aluminum die castings will affect supply chains from GM, Toyota, Subaru, and BMW.

2/27/2017 - Firefighters battled a fire on Monday night at the Alcoa West plant in Massena, New York.

2/16/2017 - Acid fumes leave hundreds injured as German factory leaks dangerous chemicals.

1/24/2017 - Fire at Recticel's Czech plant may impact suppliers globally.