Thai Flood Continues to Confuse Japanese Nonferrous Companies

Japanese nonferrous metal industry has suffered operative suspension in Thailand due to flood. Japan External Trade Organization reported seven industrial estates in Ayutthaya and Pathum Thani Provinces were immersed as of October 19 and more than 420 Japanese companies are forced to suspend their productive sites.

Among Japanese electric cable makers, Fujikura’s productive network is the largest in Thailand. Fujikura holds the secondly largest sales share of flexible printed circuit (FPC) in the world. Fujikura Group’s FPC plants are suspended in Rojana and Navanakorn industrial estates except for the other plant in Prachinburi Province.

Sumitomo Electric Industries have suspended the automotive wiring harness factory in Rayong Province without direct flood damage since the customers, mainly Japanese automakers, have downed Thai operations. Yazaki Corporation’s Thai sites are also not damaged directly but some factories are decreasing productions due to troubles in component supply.

Among Japanese smelters, Mitsubishi Materials suspends the local plant for cemented carbide tools and construction tools in Bang-Pa-In industrial estate, Ayutthaya. DOWA Holdings’ recycling plant in Thailand is not directly damaged but scrap delivery is likely to decrease from flood areas.

As for aluminium re-rollers and sash makers, Furukawa-Sky Aluminum, Sumitomo Light Metal Industries and Showa Denko locate their productive subsidiaries in Rojana industrial estate. All of these plants are immersed and it is unclear when to recommence operations. In Navanakorn industrial estate, Sumitomo Light Metal Industries, Nippon Light Metal and Lixil Corporation are forced to suspend local sites. The companies are considering alternate production even in Japan.

Kobelco & Materials Copper Tube in Navanakorn industrial estate and Furukawa Metal (Thailand) in Sara Buri Province, which are copper tube makers, are continuing operations but indirectly impacted by troubles at the customers or in distribution network.