Honda was the only manufacturer to helplessly watch as its factories went under water in 2011, since it was the only automaker to be located in flood-prone Ayutthaya. However, the carmaker says that since the Ayutthaya disaster, it has put together a flood-monitoring team that closely follows water levels at various dams in Thailand. They work closely with different organisations to analyse chances of heavy flooding in Thailand.
“These measures have helped us decide where to build our new plant. For example, the Prachin Buri plant is located 30 metres above sea level, while central Prachin Buri is 25 metres above sea level,” Sompop Patipanthada, marketing division manager of Honda Automobile (Thailand), Honda’s automobile production and sales joint venture company in Thailand, pointed out in a telephone interview.
The new plant, to be located in the Rojana Industrial Park, requires an investment of Bt17.15 billion, including land acquisition and construction costs. Production of small and sub-compact models is slated for 2015 with an annual capacity of 120,000 vehicles and an initial workforce of 1,200. The new plant will help Honda raise its production capacity in Thailand to 420,000 vehicles per year.
Sompop said Honda has learned a valuable lesson from Ayutthaya and is cautious when making new decisions.
“For example, the Rojana Industrial Estate in Prachin Buri has a 5-metre-wide canal surrounding it to help drain any flood water,” he said, adding that the present flooding should not pose a threat to the company’s plant.
“When making a decision on where to locate the new plant, we chose high ground and devised emergency plans to counter flooding,” he said.