Chengdu Hi-tech Industrial Development Zone Photo: VCG

Businesses in Chengdu, Southwest China's Sichuan Province have said they are operating normally and have resumed production amid a new COVID-19 flare-up after recent power supply shortages have been eased, the Global Times has learned.

Foxconn's Chengdu plant is currently under closed-loop management and is now operating normally, the company told the Global Times on Friday.

A manager surnamed He who works for a precise mold manufacturing business at Chengdu Hi-tech West Zone said the firm's factory has returned to full production and is under closed-loop management.

"Our factory has returned to full production after the power supply was restored. Employees arrived at the factory on Monday and production began," said He.

The manager noted that the business remains in strict accordance with the epidemic prevention requirements, with nucleic acid detection conducted for each employee every 24 hours.

Tongwei Co, a feed products and photovoltaic supplier that located in the Chengdu Hi-Tech Industrial Development Zone, announced on Friday that the factory area of the company had implemented closed-loop management, while other employees were asked to work at home. Production and operation remained normal. 

It is reported that Tongwei has approximately 30,000 employees.

In addition, Tongwei said that its logistics, transportation and procurement had been unaffected.

According to latest statistics, a total of 766 local cases have been reported in Chengdu as of Thursday, including 570 confirmed cases.

Chengdu COVID-19 prevention and control headquarters announced a round of nucleic acid testing throughout the city from Thursday to Sunday, requiring all residents to stay at home from 6 pm on Thursday.

Prior to this most recent COVID-19 flare-up, Sichuan Province had suffered a power supply shortage due to ongoing drought as the province is heavily reliant on hydroelectric power generation. Water levels at several hydropower stations in Sichuan have dropped by as much as 40 meters in August.

Hydro power accounted for 78 percent of all power generated in Sichuan in 2021, while hydro power only accounted for 15 percent of power generation in China in the same period, according to official statistics. 

Sichuan Province announced plans to lower its energy supply emergency response level from level I to level II starting on Monday and power restored.

Companies based in Sichuan announced that they have resumed production and that the power supply shortage had little impact on their overall operations.

Tianqi Lithium, based in Suining, Sichuan, announced during its half-year performance presentation that since mid-August, the company has strictly complied with the requirements mandated by local authorities, actively adopted safeguard measures, and organized production to take place in a reasonable and orderly manner. 

On the premise of complying with the requirements of the local authorities, Tianqi's factories have been operating normally. Recent power rationing has not had a significant impact on the company's production and operations, Tianqi said.

D&O Home Collection Group Co, located in Chengdu's Eastern New Area, announced on Thursday that related production lines affected by the recent electricity shortage have resumed production in an orderly manner, and the limited capacity had been fully restored.