SEOUL, Nov 8 Reuters Operations at Kia Corp39;s assembly plant in South Korea have been suspended due to disruptions in parts supplies, the carmaker said on Wednesday.
Poongki Industrial Co Ltd, a Kia supplier that makes chassis parts, suffered a fatal accident that resulted in the death of one worker on Tuesday and halted its own operations, causing supply disruptions at Kia39;s plant, a Kia spokesperson said.
Labour authorities are investigating the accident, putting a halt to forklift truck operations at the Kia supplier39;s factory, a labour ministry spokesperson said.
Poongki was not immediately available for comment.
Kia is checking on alternative sources for Poongki39;s components, according to the Kia spokesperson.
The plant located in the southwestern city of Gwangju produces about 2,000 vehicles a day, according to media reports.
Kia runs two more plants in South Korea.
It appears to be a temporary setback for Kia, hence we are not seeing much impact on Kia39;s share moves, said Lee Jaeil, an analyst at Eugene Investment Securities, adding Kia39;s decision to halt operations was probably a precaution after the accident.
Kia shares were trading down just 0.13 at 0222 GMT, in line with the broader market.
Reporting by Jumin Park and Heekyong Yang; Editing by Ed Davies
Source Reuters