Widespread effects on operations
As the authorities are busy draining water to the Gulf of Thailand and save industrial estates, what remains unclear is when the suspended industrial plants would resume normal operations and what the exact damage value will be.
Toyota Motor in Japan said in a company statement to the Tokyo stock exchange that its Thai facilities would be suspended until Oct 22. Earlier, it planned to resume operations on Oct 16 after the suspension on Oct 12 following supply disruption.
Over 20 auto parts makers are operating in Ayutthaya, which is severely damaged by floods.
Honda Motor said in a company statement to the Tokyo stock exchange today that it has no timeframe for resuming operations at its plants in Thailand. Honda is still assessing how much the flood may cost the company, the statement said.
The company's assembly plants in Rojana Industrial Park in Ayutthaya are submerged in water along with other 300 industrial plants in the estate, over 100 in Saha Rattana Nakorn Industrial Estate, and 143 in Hi-Tech Industrial Estate.
US hard-drive motor maker, Nidec, which suspended six of seven plants in Thailand also announced that three of the plants were damaged by the flooding. Its hard-disk drive motor plant in Pathumthani will be closed until Oct 16, Nidec said, without giving a timeframe for reopening the other plants.
Quality Construction Product, with plants in Bang Pa-In Industrial Estate, also shut down operations on October 12 to prevent the facilities from floods, and would resume the operations when the situation gets better.
Officially, the damage is estimated to reach Bt100 billion, inclusive of Bt16-Bt20 billion of losses to the agricultural sector, according to Bank of Thailand Governor Prasarn Trairatvorakul.
Also suspending operations are Inoue Rubber (Thailand) Plc's facilities in Wang Noi since Oct 13, Rich Asia Steel Plc's distribution centre in Wang Noi on Oct 13, Sun Wood Industries Plc's facilities in Bang Sai, Rockworth Plc's Bang Pa-In facilities on Oct 12, and Thai Central Chemical Plc's second factory in Ayutthaya.
Home Products Centre Plc reported today that its distribution centre in Wang Noi, Ayutthaya is unaffected by the flood, but given inconvenience the centre was closed. Suppliers are now instructed to deliver products directly to stores. It said though floods may damage certain products and assets in the centre, the company has insurance for any flood-related losses. The company also continues with its HomePro Expo during Oct 14-25 at Muang Thong Thani.
