Thailand Flood Drives Indonesian Auto Parts Output

According to the Economic Division, Taipei Economic and Trade Office in Indonesia, Ayyuthaya province about 67km north of Bangkok known as “South Asian Detroit” is the gathering place of the Japan and US car manufacturers. Rojana Industrial Park in Ayyuthaya has 193 factories and 90,000 employees, and the direct investment reaches THB56 billion. Rojana Industrial Park is now affected by flooding, the water level up to 3 meters. 

It is Thailand’s most severe flood in 50 years. The flood has already swept across 60 of the country’s 77 provinces, including the production facilities of Toyota’s motorcycle company, Honda’s motorcycle company and the Canon factory in the past two months and it has destroyed 10% of Thailand’s croplands. Amiko Tomita, the spokesman of Toyota motorcycle company says it has closed three Thailand factories last Sunday and considers to reopen the operations after the flood is under control. Thailand Toyota car factories manufacture Yaris, Vios, Limo, Corolla Altis, and Camry models with an annual output of 550,000 units.

Thailand flood has affected its automotive assembly factories and is expected to drive the Indonesian auto assembly factories to accomplish the production output up to the goal of 1 million units in 2011.