For the past couple of weeks Supply Chain Matters has been monitoring the Internet on reports of widespread flooding rains occurring throughout Southeast Asia. Today, a Reuter’s published report indicates that flood waters have breached an industrial estate to the east of Bangkok, stirring fears of a repeat of the devastation and industry supply chain disruption that occurred in the area in 2011. Authorities however stress that floodwaters are moving in a different direction than what occurred in the widespread flooding of 2011, but that factories that were sparred in 2011, could be at risk.
According to Reuters, Amata Corporation, Thailand’s biggest industrial estate developer indicated that its Amata Nakorn industrial park in Chonburi province was operating normally despite minor flooding. Water reported to be at a depth of 15 cm (6 inches) has entered the park and accumulated in three areas. The developer indicated a plan to build a temporary floodway if conditions worsen. The report indicates that half the factories in this industrial park hail from Japan and produce automotive components. Reuters further indicates that Toyota is evaluating risk management scenarios for one of its three assembly plants in Thailand.
Based on this news, Supply Chain Matters advises industry supply chain teams with suppliers or value-chain facilities located in Thailand to continue or step-up monitoring of events occurring in that country, and at supplier facilities, particularly current states of flooding, infrastructure and transportation conditions in the region. While reports would seem to indicate this is not at all the conditions that occurred in 2011, caution is always advised.
If any of our readers have first-hand knowledge of conditions please share them by adding a comment to the bottom of this post or if you prefer, email: info <at> supply-chain-matters <dot> com and we will update our readers with any first-hand reports of conditions.
There was an AFP published report on October 10 indicating that two unnamed foreign factories producing electronic spare parts at the industrial park in Chonburi had elected to halt operations for two days because workers were finding difficulty in getting to their place of employment. Also reported was that the industrial estate was pumping water out of the margins of the industrial park.
Again, readers are encouraged to share any other reports concerning either flooding conditions in the industrial areas or potential impacts to supply chains.