Thai Floods Disrupt Factories At Home, Production Abroad

Posted October 26th, 2011 at 12:50 pm (UTC-5)
Leave a comment

A global rating agency says Thailand's severe floods are disrupting manufacturing in that nation, and hurting production of parts used by factories in other countries.

Thailand is a major production site for Japanese electronic and auto companies, turning out both finished products and parts needed for assembly elsewhere.

Two reports from Standard & Poor's Ratings Services Wednesday say their experts think the disruption will not last long enough to hurt the creditworthyness of major Japanese manufacturers like Toyota and Sony.

A news report says the Thai floods have closed Toyota, Nissan, and Honda factories for weeks. The story says a lack of parts is prompting Toyota to reduce some production in Japan, Indonesia, Vietnam, and the Philippines. Another report says a lack of parts forced Honda to close a plant in Malaysia.

Flooding disruptions are also prompting Sony to delay introduction of a key new product.