Energy: Power Shortage Disrupts Production of Fuel Needed for Process
Kyocera America, Inc. has cut back production and idled some workers at its San Diego plant because the state’s electricity crisis has cooled some of its furnaces.
A Los Angeles-area vendor has not been able to produce enough of a gas that fuels the furnaces in Kyocera’s ceramic electronic package plant on Balboa Avenue, said Jeff Howell, Kyocera America’s vice president of sales and marketing.
The vendor notified Kyocera on Jan. 19 that it would ship 25 percent of the company’s normal supply of gas, effective immediately. The vendor, whom Kyocera officials would not name, has since promised 50 percent shipments. It was unclear when the 50 percent shipments would begin.
Faced with the shortage last week, Howell said, Kyocera sent home roughly 120 employees on Jan. 22, 50 employees on Jan. 23 and an undisclosed number of employees on Jan. 24.
The company issued a statement Jan. 24 saying if the shortage continues, it may be forced to shut down the Balboa Avenue plant until the situation is resolved. The plant has 1,000 employees.
Kyocera America has 1,100 more employees at its maquiladora in Tijuana. As of last week the Tijuana plant was not affected.
Kyocera’s cell phone factory near Sorrento Valley, Kyocera Wireless Corp., is not affected by the shortage.
The Balboa Avenue plant itself has adequate electricity, but is suffering from a vendor powering down.
Southern California Edison has “significantly curtailed” the amount of energy flowing to a Los Angeles-area company that supplies Kyocera with liquid nitrogen burned in its furnaces, Howell said. The vendor has operations in El Segundo and Santa Fe Springs.
“It is our understanding that the two other main suppliers of liquid nitrogen are also experiencing energy supply shortages in California,” said Howell.
“Kyocera America is committed to our employees and customers and will do everything humanly possible to explore other options with the supplier and other sources of the gas to eliminate any threat of a plant shutdown,” he said.
“We urge both state and local government, as well as the utility companies, to develop a quick solution to the energy crisis in California that is affecting so many people.”
Kyocera’s ceramic packages are used in cellular base stations, satellite communications, surveillance systems, sensors, medical devices, automotive electronics, microprocessors and consumer electronics.
