According to Bloomberg News, Foxconn does not foresee any delays on iPad 2 production after last Friday's explosion at the Chengdu factory and subsequent shut down of its case polishing facilities in China because it "has a week of inventory."
In a new statement concerning the blast that took place last week, Foxconn has confirmed three people were killed and 15 injured, with 9 still in hospital. Preliminary findings on the cause of the accident are pointing to "an explosion of combustible dust in a duct" in the case polishing department but further investigation are necessary. As a result, all of Foxconn's case polishing operations (in both Chengdu and Shenzhen factories) have been halted, but other parts of the plants are "operating normally."
According to MIC Gadgets, there are barricades set up outside the damaged facility; the police manning the blockade apparently crushed and split in half a video camera, and confiscated a photo camera from Xinhua News reporters. The Taiwanese press, on the other hand, has been able to provide coverage without intrusion from Chinese officials. The media blackout in China on this accident has meant that some family members of the workers at the Chengdu factory still have not been able to reach their loved ones, while workers who survived the accident seem reluctant to share their experiences.
I find it hard to believe production won't be affected by this accident and on-going investigation but this is the official word so you can come to your own conclusions.