Honda to resume production in Ayutthaya as soon as possible

Rojana Industrial Park, where Honda’s assembly plant is located, is still safe from the flooding that has ravaged much of the province, but the company had to halt production temporarily on Wednesday because its suppliers could not ship parts to the plant.

“We are constantly evaluating the flood situation. We will resume nor mal operations as soon as possible,” Pitak said.

Honda has moved about 4,000 assembled cars to a safe place, he added.

The Honda facility, which has production capacity of 240,000 units per year, employs about 6,000 workers. The company is likely to have an update on the situation on Monday.

Amara Charoengitwattanagun, independent director of Rojana Industrial Park, said the park had not

closed as advised by the Industrial Estate Authority of Thailand (IEAT), but had told its clients to consider the flooding situation and make their own decision on maintaining operations. Some of them have announced production suspensions, but others are still running their plants as usual.

She said it was too soon to think about how the flooding has affected the confidence of investors dealing with Rojana, as the situation had been serious for only a few days. Besides, the investors will consider many factors before making a decision and think for the long term.

The IEAT has urged all industrial estates in Ayutthaya province to suspend operations to prepare for more flooding expected next week.

Asia Plus Securities said it had surveyed four industrial-estate operators, namely Amata Corporation, Hemaraj Land and Development, Rojana Industrial Park and Ticon Industrial Connection. The broker

said Rojana seemed to be the most affected by flooding in Ayutthaya.

One of its industrial parks is in the province’s Uthai district. It accounts for 75 per cent of the company’s total industrial-park area of 10,000 rai (1,600 hectares). Rojana is building a soil wall to a height of 7.5 metres, up from the 6.5 metres currently, to deal with the flood, which is expected to

be as high as 6 metres.

Revenue from this industrial park accounts for 56 per cent of Rojana’s total revenue, Asia Plus Securities said.

Ticon, which operates warehouses for rent and factories for lease, also does business in Ayutthaya province. Factories on lease in three industrial estates – Rojana, Hi-Tech and Bang Pa-in – in the province account for 40 per cent of the company’s total factory area of 550,000 square metres.

None of those estates has been hit by the flood so far. Ticon Logistics Park in Rojana and Ayutthaya’s Wang Noi district is so far safe from the flood as well.

“The industrial area in Ayutthaya province will be less attractive for investors. If flooding occurs every year, investors may consider moving their manufacturing facilities to safer places,” Asia Plus said.

The broker said it was likely to lower its forecast for operating results of Rojana and Ticon based on the possible impact from the flooding. Total car production in Thailand is expected to be maintained at the earlier target of 1.8 million units this year despite the massive flooding, which has hit many provinces throughout the Kingdom, said Piengjai Keawsuwan, president of the Thai Automotive Industry Association.  She said many carmakers had made urgent plans for a quick recovery after the flooding is over to cash in on the high sales season in the current fourth quarter.

“There are many months until the end of this year and I believe that all car manufacturers as well as dealers will adjust very quickly to the situation,” said Piengjai, who is also a chief of Nissan Motor (Thailand).

She said the number of overall car sales domestically was expected to reach the target of 950,000 units this year.