Thai Flood Affects Japanese Steel Makers Operation

In North Bangkok, Thailand, Japanese steel makers are affected by flood damage. Rojana Industrial Park Public of Ayutthaya province, in which Sumikin Bussan holds 21% shares, issued evacuation advisory to 229 companies in the park on October 9. Thai Sumilox, the subsidiary of Sumitomo Metal Industries, was included. Japanese steel makers mostly have Thai factories in southeastern area of the country where flood damage is not as serious as in Ayutthaya. However, Japanese steel consumers such as automakers and automotive component makers are forced to shut down their Thai factories. Japanese steel export may be indirectly impacted.

There are 135 Japanese companies in Rojana Industrial Park. There wasn’t human suffering. Sumikin Bussan sent staffs to Rojana to gather detailed information. Thai Sumilox, an electric steel sheet processor, shut down operation on October 8 to secure human safety. It is unforeseeable when to recommence operation.

In southeastern and southern Thailand, there are many group companies of Japanese steel makers including SUS, Nippon Steel’s cold rolling mill, TCR, JFE Steel Group’s steel tube factory, or TCS, JFE Steel Group’s electrogalvanized steel sheet maker. Other steel makers’ local factories for tin plate, wire rod and steel bar are also located. These factories haven’t been affected by flood yet.