Meeting on Korat factory closures
Nakhon Ratchasima is calling for an urgent meeting next month to discuss the province's industrial development situation after the closure of some 25 factories so far this year.
Hasadin Suwatanapongched, chairman of provincial branch of the Thai Chamber of Commerce, said today that the issue would be discussed at a joint public-private-sector meeting to be chaired by the provincial governor.
He said the factories were shut down for two main reasons: low demand from domestic and overseas buyers, and outdated technology.
Paisit Pitisongswat, chairman of the Federation of Thai Industries in Nakhon Ratchasima, said last weekend that most of the shut-down factories were of small or medium scales. With low capital bases, they could not stand a decline in orders.
Some small factories were closed for some time but they just recently notified the Provincial Industrial Office, Paisit said. He also noted that the number accounted for only a small part of the more than 2,600 factories located in the province.
According to Nakhon Ratchasima’s industrial office, the province accommodates 2,640 factories, employing 146,328 workers.
Year to date, 25 have been shut down, resulting in the layoff of some 3,000 workers.
“The industrial sector has gained confidence after the appointment of Somkid Jatusripitak as deputy prime minister. New investment should remain slow, though, until there are signs of improvement in the economic condition and purchasing power,” Paisit said.
