Industry Ministry: 74% of factories in flooded industrial estates back in operation

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BANGKOK, 4 June 2012  – The Industry Ministry has revealed that 74.6% of the factories located in the 7 flood-affected industrial estates have now resumed operation, while indicating late insurance payment as a cause of the delayed recovery. 

Speaking on the progress of post-flood recovery, Industry Permanent Secretary Witoon Simachokedee disclosed that a total of 839 factories located in 7 industrial estates were hit by last year’s flood. Out of this number, 626 factories or 74.6% have now resumed operation, 334 of which have regained full production capacity while the remaining 292 have recovered partially. Meanwhile, those which have yet to recover are planning to reopen at a later date this year or the next, whereas others have permanently closed down or relocated.

On the other hand, almost all of the 7,893 flooded factories located outside industrial estates have restarted their production line; only 3% have closed down or relocated.

Mr. Witoon said that the delayed recovery of the factories is due to the late payment of insurance money, which is required as the working capital and is essential to the revival process. Additionally, he cited a shortage of machinery maintenance personnel and the tardy loan acquisitions from financial institutions as two other causes of slow recovery.

Meanwhile, the Permanent-Secretary expects the 4.8-billion-baht floodwall construction project at six of the flood-hit industrial estates to be on schedule, considering the significant progress made so far. He added that the cabinet is in the process of mulling over a 3.2-billion-baht subsidy for the construction expenses.