TOKYO (MNI) - Five Japanese carmakers will shut down their factories in Thailand as the massive flooding has forced plant closures in the industrial heart of the country, a key Asian production base for automobiles and electronics, according to media reports.
At least 400 Japanese factories have been inundated in six industrial estates in Ayutthaya and Pathum Thani in the wake of the flooding, which has been continuing for over two months and threatening to hit the capital, the Bangkok Post said.
The death toll in Thailand's worst floods in five decades has surpassed 300, press reports said.
Mazda Motor Corp will idle a Thai plant on Wednesday while Mitsubishi Motors Corp will also suspend production from Thursday, joining leading Japanese automakers which have already halted local operations, the Nikkei said.
Honda Motor Co and Toyota Motor Corp have shut their plants since Oct. 4 and Oct. 10, respectively, while Nissan Motor Co is also suspending its plant near Bangkok, the business daily said.
Meantime, Nippon Steel Corp has slashed production at six local subsidiaries, the Nikkei said.
Canon Inc last week decided to temporarily shift production out of an industrial park in Thailand, where flooding has led to factory shutdowns at many companies.
Meanwhile, Minebea Co will partially resume operations on Thursday at two factories in Ayutthaya Province because water levels around the sites have fallen.
"I think this is the biggest loss for Japan's overseas investment," Japanese ambassador to Thailand Seiji Kojima was quoted as saying by the Bangkok Post.
"Hundreds of Japanese companies are now under water. We cannot calculate the losses until the floods recede."
The Japanese government this week warned of potential downside risks stemming from the massive flooding in Thailand on Japan's economy.
About 700 Japanese firms operate in Thailand, a key production base for automakers and electronics firms for their Asian and global markets.
Thailand is also an important consumption area. Japan's exports to the country came to 5% of its overall exports in the first half of 2011.
The Hi-Tech Industrial Estate in Ayutthaya, located about 60 kilometers north of Bangkok, is home to plants of nearly 100 Japanese firms.
1 comment:
it's time to relocate the honda and toyota factories to cambodia's dry ground, seriously! khmer people needs jobs, too, you know!
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