Japan Says Energy-related Supply Chain Bottlenecks Can Be Cleared Within Days

TOKYO, April 17 (Reuters) - Japan's industry minister Ryosei Akazawa said on Friday that supply chain bottlenecks arising from disruption to raw materials procurement including naphtha could be resolved within days, as the Iran war strains energy and petrochemical flows from the Middle East.

Concern has mounted among manufacturers over the shortage of naphtha - a key feedstock for petrochemicals - and related materials, with dozens of companies announcing actual or possible order stoppages in recent weeks despite government assurances of sufficient stock.

• At a press conference, Akazawa said that if businesses alerted authorities of any bottlenecks or imbalances, the government would address those "immediately".
• Examples of where choke points had been dealt with include heavy oil use for sewage treatment facilities and tea production, he said.
• Akazawa also cited the example of bathroom maker Toto 5332.T, which said this week it would gradually resume taking new orders for modular bathrooms from April 20.
• A Toto spokesperson said on Friday the company was preparing to start shipments after the industry ministry helped clear the bottleneck, saying it expected some components to begin arriving.
• Noting businesses' difficulties in obtaining lubricating oil and the resulting supply imbalances, Akazawa said the Agency for Natural Resources and Energy had asked primary wholesalers and lubricant trade organisations to provide the raw material at levels comparable to those of the same month last year.
• For distributors and end-users that purchased above the usual level in March, supply would be reduced accordingly from April onward.
• Kitchen and bathroom equipment maker Takara Standard 7981.T said the supply disruption could not yet be described as resolved, but that it was sharing information with the industry ministry and aimed for a swift resolution. The company has been adjusting orders and deliveries.

• Cleanup 7955.T said it had no new update after suspending the acceptance of orders for all system bathrooms on April 15, and that it wanted to even out the higher-than-anticipated volume of orders it had been receiving.