ST. LOUIS – Viasystems Group said it expects only minor impacts on the direct flow of supplies as a result of the Japan disasters; however, the possible impacts on its customers’ future order patterns are more difficult to assess.

“Reports of temporary cessation of production in automobile and other factories suggest that component sourcing matters unrelated to our business may result in customers deferring orders of printed circuit boards and assemblies produced by Viasystems,” said David Sindelar, the company’s CEO.

“In addition to mandated minimum wage increases in China, that government has begun imposing employment-based social taxes on foreign-owned enterprises like ours. And, a continued tightening of labor resources in parts of southern China is resulting in our company experiencing unusually high levels of overtime pay costs for the workers we have retained,” he added.

“Similarly, sustained high demand for electronic components has allowed materials suppliers to command higher prices for their products, on top of the upward market price effects of globally traded commodities like copper and gold.”

Viasystems builds printed circuit boards and provides electronics manufacturing services (EMS).

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