Rolls-Royce flags China supply-chain concerns while taking long-term approach to investments there
- Once confident in Beijing’s efforts to manage the pandemic, Rolls-Royce has seen ‘more interruptions’ in its China operations this year as a result of its zero-Covid policy
- The aerospace firm is seeking stability after lockdowns and other coronavirus controls have become major challenges to manufacturing, logistics and shipping in China
There is growing concern over the unpredictability of a Chinese supply chain that’s been hobbled by strict coronavirus-control measures, according to Rolls-Royce.
Nonetheless, the British aerospace firm is pressing on with its investments in the critical aviation market.
Earlier in the pandemic, from 2020-21, the aircraft-engine maker saw relatively few disruptions in its supply chain in China, due to its management of coronavirus outbreaks, said Julian MacCormac, the country manager for Rolls-Royce in Greater China.
But that confidence has waned this year. Coronavirus controls that once reassured the company have persisted and intensified under a zero-Covid policy that continues to mandate weeks-long lockdowns, mass screenings, stringent border controls and quarantines.
It’s been challenging … we need stability and predictability in our China operations
MacCormac noted how the aerospace firm’s production plants and suppliers in the provinces of Liaoning, Shaanxi, Sichuan and Jiangsu have been affected by lockdowns and disruptions.
