Flood-hit firms in Ayutthaya halt production

Most of them are in the electronics components, electrical and logistics-warehouse sectors.
Ticon Industrial Connection, a provider of factories and logistics warehouses for lease, reported to the Stock Exchange of Thailand yesterday that its 17 factories and three warehouses in Phase II of Rojana Industrial Park had been damaged by flooding. Earlier, Ticon reported that 15 of its factories in Rojana’s Phase I were inundated.
The combined rent for the 17 factories and three warehouses is about Bt9.51 million per month, bringing the rental value of all the company’s damaged properties in the Rojana Industrial Parks to about Bt19.11 million per month, or about 24 per cent of its monthly rental income. All of the properties are insured for flood damage.
Being in a critical area for flooding on the Bang Bua Thong-Suphan Buri Road, Thai Optical Group has taken preventive measures, such as building sandbag walls and installing water pumps, and continues to operate normally.
According to Bloomberg, Eng Teknologi Holdings, a Malaysian electronic-components maker, said two of its units in Thailand had temporarily shut down their hard-disk drive components operations due to severe flooding in Ayutthaya province.
The company is assessing damage to its premises, which are covered by insurance, it said yesterday. It is working out alternative plans to minimise disruption to customers.
Nikon Corp said production was suspended at its Thailand unit on October 6 after its facilities in the Rojana Industrial Park were damaged by flooding.
The Japanese camera-maker didn’t give a time frame for resuming operations at the plant, according to a statement to the Tokyo Stock Exchange. Nikon is assessing the impact of the flooding on its earnings, the statement said.
Another statement to the Tokyo Stock Exchange said electronics company Fujikura had halted production at three plants at Ayutthaya after they were damaged by flooding.
Production at another plant in Pathum Thani had been temporarily halted to ensure the safety of workers, Fujikura said. The company gave no time frame for restarting the plants.
Big C is assisting the Public Health Ministry and the Red Cross in setting up emergency centres and preparing plans to cope with flooding in Bangkok.
Big C Supercentre’s director of corporate affairs, Kudatara Nagaviroj, said yesterday that the company had fully replenished water and dry food items at its Ayutthaya branch. It has also assisted the Public Health Ministry and the Red Cross in setting up emergency treatment and survival kits for flood victims and has given overnight shelter to police assisting flood victims.
He said the company’s distribution centres were operating 24 hours a day and it was allowing its suppliers to make deliveries around the clock. Big C is replenishing stores in flood-prone areas around Bangkok and has finalised contingency plans to move its stocks if its distribution centre is flooded.
Some fund managers have stepped up efforts to calm unit holders who are worried about damage to their funds’ assets, including factories and buildings.
One Asset Management reported yesterday that none of its assets were currently affected by flooding. However, it has been monitoring the situation closely.
BBL Asset Management, which manages the Ticon Property Fund (TFund), an investor in factories and other properties, reported that TFund’s monthly rental income was expected to decline due to flooding in Rojana Industrial Park.
TFund has 46 factories in flooded Rojana Industrial Park and the rental income from them is about Bt19.6 million per month, or 23.7 per cent of its total monthly rental income.
BBL Asset Management said it could not estimate damage because the properties remained flooded.