Thailand Floods - Update

14 Oct 11

In today's Bangkok Post, a Special Report has highlighted the fact that the government has decided to drain floodwaters to the sea through the eastern and western sides of Bangkok; many areas around the capital know trouble is heading their way. The run-off water is set to reach Bangkok between October 16 and 18, which is also the high-tide period.1

Unfortunately the Hi-Tech Industrial Estate in Bang Pa-in district of Aytthaya province has sustained significant flooding after efforts to strengthen its dyke failed. There are 143 factories in the estate and investments exceed 65 billion baht. The estate houses factories manufacturing rubber, plastic, steel, metal, automotive and electronic products as well as electrical appliances and transport facilities.2

Hi-Tech Industrial Estate is not the only industrial park suffering as other industrial parks are also in danger of flooding. Other industrial estates to be potentially affected include Bang Chan and Lat Krabang estates in Bangkok, Bang Phli and Bang Pu in Samut Prakan, Kaeng Kho in Saraburi and Navanakom in Pathum Thani. The Nation3 has reported on the "continuing cost as more manufacturing companies suspend their operations because of the severe flooding including many Japanese companies that have temporarily halted production. " They include:-

  • two Ajinomoto units
  • Sony's digital-camera plant at Ayutthaya
  • a Mitsubishi Motors Corp auto plant
  • Hitachi's refrigerator-compressor factory
  • Hitachi Metals (two plants) making hard disks and autos
  • Toshiba's two plants making microchips and hard disks
  • Nippon Meat Packers' two units
  • Pioneer's two auto-electronics facilities
  • Hoya's lens plant
  • Canon
  • Nidec Corporation suspended operations at six of its seven plants. Nidec's hard-disk drive motor plant in Pathum Thani will be closed until Sunday. No time frame for reopening the other plants was given.

Other companies reported as being affected include:-

  • Westerm Digital, one of the world's largest manufacturers of hard drives for personal computers, has halted production
  • KCE Technology, a subsidiary of KCE Electronics, a maker of printed-circuit boards, shut down its plant in Ayutthaya's Hi-Tech Industrial Estate
  • Stars Microelectronics (Thailand) Because of the rising water level around the Bang Pa-in Industrial Estate in Ayutthaya, where it is located, Stars Microelectronics (Thailand) decided to halt its operations from yesterday's night shift and plans to resume production from next Monday
  • ON Semiconductor, a US-based maker of chips that help computers manage power, expects some loss of revenue in the current quarter and into next year after suspending production at its Sanyo Semiconductor unit, it said in a statement on Tuesday.

Cunningham Lindsey has been in contact with clients and has arranged various appointments at head offices in Bangkok to commence the claim process. We have also been able to get an adjuster north of Ayutthaya, via a circuitous route, to commence carrying out inspections. All efforts are being made to service clients and start claims handling where possible.

Gareth D. Sampson
ACII FCILA FUEDI-ELAE
Managing Director
Cunningham Lindsey (Thailand) Ltd.
gsampson@cl-int.com
Mobile: +66 81 754 7748
Jakkrit Khaosa-ard
ATII ANZIIF (Snr Assoc) CIP ACLA
Associate Director
Cunningham Lindsey (Thailand) Ltd.
jKhaosa-ard@cl-int.com
Mobile: +66 081 319 9487

 


1 The Nation, 14 October 2011
2 Bangkok Post, 14 October 2011
3 The Nation, 13 October 2011

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