Auto supply chain stops with roads and transport flooded. High-tech equipment in electronics factories damaged.
FLOODING: Damage to hit exports, Electronics firms face longer recovery time by Post Reporters
Concerns are rising among businesses that the flooding that has swept across the country may extend its impact to exports.
The supply chain for exports is now threatened by heavy inundations that have affected hundreds of factories in the Central Plains, said Payungsak Chartsutthipol, the chairman of the Federation of Thai Industries (FTI).
Singh Tangchareonchaichana, head of the central region chapter of the FTI, said that around 3,000 factories in seven central provinces had been affected, with physical damages of at least 15 billion baht.
At Saha Rattana Nakorn Industrial Estate in Ayutthaya, all 46 factories are flooded, along with 98 factories in Bang Pa-In Industrial Estate. Electronics plants in Rojana Industrial Estate are also affected.
Rice mills and food processors could recover in two months but electronics plants could need up to six months to repair high-tech equipment, he added.
Normally, manufacturers at this time of year are running plants at maximum levels with overtime shifts for products to be shipped for the Christmas and New Year season," he said.
But this year, floods could result in a 30% drop in exports from factories in the most heavily affected provinces, said Mr Singh.
Honda on Wednesday suspended car production as three parts suppliers at Saha Rattana Nakorn Industrial Estate in Ayutthaya were severely affected by the flood.
"We have no idea how long the suspension will last," said Pitak Pruittisarikorn, executive vice-president of Honda Automobile (Thailand). "We will resume normal production as soon as we get enough parts supplies.
Honda has been producing 1,000 cars a day at its Ayutthaya plant and has cleared inventories there by delivering vehicles to its dealers nationwide.
Canon Inc, meanwhile, said it was assessing possible damage at its inkjet printer plant in Ayutthaya. However, any damage to the plant would be unlikely to halt operations, said Hirotomo Fujimori, a Tokyo-based spokesman.
Kazuo Karasawa, managing director of Hitachi Asia (Thailand), said his group had 40 companies operating in Thailand with two factories in Rojana Industrial Estate in Ayutthaya.
"We are worried that production at the compressor and rotary transformer factories in Rojana will be hurt because transport is quite difficult in the area," he said.
Hitachi also makes home appliances in Kabin Buri Industrial Estate in Prachin Buri and they are facing flood threats .
Yutthapong Jiraphaprapong, head of the FTI's northern chapter, said weeks of floods had resulted in total damages of 100 billion baht with vast areas of crops such as rice and corn damaged.
Not many industrial plants in the North are flooded but manufacturers face rising prices and shortages of raw materials, partly caused by transport disruptions.
A Chiang Mai-based sweet corn producer, for example, reports 10,000 rai of corn plantations in northern provinces damaged.
Meanwhile, sugar mills in Nakhon Sawan and Ang Thong report losses of tens of thousands of tonnes of inventory in the floods.
Tanit Sorat, an FTI vice-chairman, called on the government to provide financial aid and other remedies. State-owned banks, such as the SME Bank, should take the lead in extending soft loans to affected manufacturers.
Mr Singh proposed waiving utility bills for factories. Imports of key materials such as soybeans and coconuts for food processors should also be allowed to offset local shortages, he said.
Paiboon Ponsuwanna, chairman of the Thai National Shippers' Council, said the floods could dampen exports in the final quarter.
Floods have pushed raw materials prices up as the central region is the major supply base of agricultural produce as well as electronic parts manufacturing, he said.
"We are now worried about the South which is facing flood threats," said Mr Paiboon. "If the South faces a severe flood like early last year, fishery product and shrimp supplies will be hurt."
(Source: Bangkok Post, FLOODING, Damage to hit exports, Electronics firms face longer recovery time, 7/10/2011, Post Reporters, link)
Floods and Supply Chain Vocabulary
supply chain - the many steps of producing goods that are used in parts in more complex parts (intermediate goods) that are, in turn, used as parts, until a final good is produced sold in stores to consumers (See Wikipedia)
threatened - in danger, there may be harm and damage
the supply chain for exports is now threatened
industrial estate - a special area for factories and heavy industry located outside the main residential area of a city and normally provided with good transportation access: highways, railroads, airports, and ports, also has special infrastructure for industry such as high-power electric supplies (often including three-phase power), high-end communications cables, large-volume water supplies, and high-volume gas lines, also called an "industrial park" (See Wikipedia)
plants - factories
electronics plants - factories that produce electronics goods (TV sets, computer hard drives and monitors, digital cameras, etc)
recovery (noun) - becoming strong and healthy again after an illness or a problem ฟื้นฟู when the economy gets better (more jobs, higher incomes) การฟื้นฟูสภาพ
extend - to include something more ยืดออกไป ขยายออกไป
impact - an effect or influence ผลกระทบ
the flooding that has swept across the country may extend its impact to exports
inundations - flooding (large amounts of water entering a place suddenly)
chapter - a branch or local office of an organisation
central region chapter of the FTI
physical - real things that can be touched and seen (not just an idea or legal right)
physical damage - when things are broken and destroyed and can no longer be used
recover (verb) - when the situation improves, gets better; to become healthy and fit again after an illness or injury การฟื้นไข้
repair - to fix something that is broken or damaged ซ่อมบำรุง
need up to six months to repair high-tech equipment
maximum - the most possible ที่สูงสุด ที่มากที่สุด
running plants at maximum levels - producing the highest amount possible from a factory
overtime - additional work done by an employee beyond normal hours (usually paid more for this work, for example 1.5 times more, "time and a half")
most heavily affected provinces
severely affected by the flood
suspended (verb) - stopped for a period of time (temporarily)
suspended car production - stopped producing cars at the factory (for a period of time)
suspension (noun) - stopping for a period of time (temporarily)
resume - to begin again after stopping for a period of time ดำเนินต่อไปใหม่, กลับมาอีกครั้ง
parts suppliers - car parts suppliers (one company produces car doors and sends it to the next company in the supply chain, for example)
have no idea - do not know
we have no idea how long the suspension will last - we do not know how long the temporary production stop will be
cleared inventories - all goods sent out from warehouses to stores and dealers ("shortages" mean goods kept in warehouses (inventories) reduced to zero)
vehicles - machines with an engine used to carry people or goods from place to place ยานพาหนะ
nationwide - throughout the whole country ทั่วทั้งประเทศ
delivering vehicles to its dealers nationwide
halt - to stop หยุด หยุดนิ่ง
unlikely to halt operations
assessing possible damage - estimating and calculating the total likely damage from the floods
transport - to move people or things from one place to another ขนส่ง
transport is quite difficult in the area
home appliances - goods such as refrigerators, microwaves, air-conditioners, washing machines that people use in the home
vast - extremely large in area, size, amount, etc. กว้างใหญ่, มหาศาล
vast areas of crops such as rice and corn damaged - large areas of farmland have been damaged
shortages - when there are not enough goods for people to buy การขาดแคลน
raw materials - materials in their natural state before being processed or used in manufacturing
shortages of raw materials - when companies do not have enough of the raw materials they need to produce goods
transport disruptions -
manufacturers face rising prices and shortages of raw materials, partly caused by transport disruptions.
producer - a company that makes or "manufactures" a certain good ผู้ผลิต
sweet corn producer - companies that produce sweet corn
plantations - large farms with many workers growing commodity crops such as rubber, sugar, or coffee
corn plantations - large farms that grow corn
inventory - goods that a company has bought and stores for future use or sale (See Wikipedia) สินค้าที่จัดเก็บในสต๊อก
aid - help; assistance ความช่วยเหลือ
financial aid - เงินช่วยเหลือ
remedies - things that solve a problem (or cure a disease)
take the lead - be the first to take some action (before others who will follow behind the "leader")
soft loans - loans with easy terms (low interest rate or long period of time to repay, for example)
extending soft loans - offering soft loans (to the companies suffering damage)
take the lead in extending soft loans to affected manufacturers
proposed - suggested (but not yet chosen or decided upon)
waive - say that people don't have to do something (like pay their utility bills or taxes)
utility - some basic service like electricity or water (usually provided by the government or a large monopoly) Impact on Singapore's poor Low-income families
utility bill - the money that must be paid to the electricity and water companies every month, to pay for the amount of that "utility" that you used
proposed waiving utility bills for factories
key - important คนสำคัญ
key materials - important materials (needed by companies to produce goods)
offset - reduce by moving in the opposite direction, counter-balance, compensate in the opposite direction ("x offsets y" means "x reduces the effect of y"), make up for (profits from the manufacturing business offset losses from the retail business) (See glossary)
offset local shortages - reduce the goods shortage by getting an extra supply of goods
Imports of key materials such as soybeans and coconuts for food processors should also be allowed to offset local shortages
dampen - decrease and make less, reduce intensity or energy ทำให้หดหู่
final quarter -
floods could dampen exports in the final quarter
base - a place from where an activity can be planned and operated ฐานที่มั่น
the central region is the major supply base of agricultural produce as well as electronic parts manufacturing
severe - very serious and worrying ที่รุนแรง ที่น่าเป็นห่วง
fishery - a fish farm or area of water where fish are caught so they can be sold พื้นที่ในการจับปลา
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