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In-Briefs

Thailand/Japan: Flooding in Bangkok Hurts Japanese Manufacturing

November 10, 2011
| Economics
|

Flooding in Bangkok, expected to last until December, is hurting manufacturing plants producing  parts for the U.S. automobile and computer industries . . . Japan is Thailand’s largest foreign investor and  Honda and Toyota have been hurt especially hard by the flooding . . . Toyota is expected to resume operations in Thailand on November 21st . . .  according to Advanced Research Japan, “If the Thai floods continue to reduce production for three months, Toyota’s operating profit may be cut by 200 billion yen ($25 million)” . . . Thailand also manufactures around a quarter of all hard drives for the computer industry . . . prices for hard drives reportedly may increase by up to 180 percent . . . Hitachi and Canon have also been forced to stop production . . . the setbacks to production from flooding hurts Japanese electronics companies and automakers which had been set to boost output after the Japanese earthquake and tsunami earlier this year . . . flooding delays will further hamper Japan’s recovery.

  
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