Wednesday, October 12, 2011

900 manufacturers hit by floods

At least 900 factories have been inundated by the floods, affecting more than 200,000 workers, Industry Minister Wannarat Channukul said on Wednesday.

Mr Wannarat said manufacturers in Bang Wa (Hi-Tech) and Bang Pa-In industrial estates have now also halted operations to minimise damage in the event that flood water inundates the industrial zones.

The minister planned to discuss ways to rehabilitate the flooded factories at next Tuesday's cabinet meeting.

Suparat Sirisuwannangkul, vice chairman of the automobile club at the Federation of Thai Industries said the extensives flooding would certainly widely affect the automobile industry.

Several manufacturers of auto-parts in Ayutthaya’s industrial estates were flooded and this would force the car makers to temporarily halt their production-lines, Mr Suparat said.

“If the flooding continues the output target of 1.9 million units will not be achieved and the target will have to be lowered to less than 1.8 million,” he said.

Piangchai Kaewsuwan, vice president at Nissan Motor (Thailand), said she had already discussed ways to rehabilitate the flooded auto-partsfacgtolries after the water has receded with the industry minister.

Honda Motor (Thailand) said that it is now assessing the damage caused by the floods. To help restore customers' confidence, Honda announced that its submerged cars will not be offered for sale, as many people fear.

The giant Japanese car maker admitted that it had closed production lines yesterday until the end of this week.

Honda (Thailand) had early this month announced that it would increase production capacity of its plant to 1,000 units a day now Japanese auto-parts producers have recovered from the earthquake and tsunami that hit Japan in March.

Mazda Sales (Thailand) said its car assembly plants in Rayong have temporarily stop operations to check whether any of its auto-parts suppliers are affected by the floods.

Toyota (Thailand) has also halted production lines at three plants in Rayong since Monday, Oct 12, due to its suppliers of auto-parts were also affected by the floods in Ayutthaya.
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