Previously operating over 40,000 spinners until submerged under 1 meter flood since October, Indorama Polyester Industries factory in Lopburi ported total damage of baht Baht 1bn while Thai Toray lost several billion Baht. Thai Kurabo has not estimated its damage but K. Cotton & Gauze’s flooded go-down suffered a loss of at least Baht 10mn. President of the Thai Weaving Industry Association hopes that local textile industry will turn this crisis into an opportunity through mutual help and cooperation.

Thai Toray Synthetics has been 3-meter under water since October 13, 2011.

Indorama Polyester Industries’ senior marketing manager, Mr. Kanchit Jantaban, confirmed that 900 workers stopped working but they continue to receive their; the other two plants in Rayong & Nakhon Pathom are not flooded but remain under full alert.

“Demand has disappeared as overseas buyers have no confidence in the government which had three months to prepare for the flood but failed to manage the situation. Export orders have shifted to other suppliers and it will take a long time to woo them back. The government had no clear-cut policy to manage the flood and did not delegate experienced people to solve the problem quickly. With good governance, this natural disaster would not have had such a severe impact. Although garment consumption will decline, demand for home textiles should remain buoyant as people need to repair their houses,” said Mr. Kanchit.

Located at Ayutthaya Hi-tech Industrial Estate, Thai Toray Synthetics has been 3-meter under water since October 13. Almost all machinery on the ground floor needs to be replaced. New orders are declined but outstanding orders need to be fulfilled by air-freighting imported goods such as nylon66 for delivery to customers. Air cargo cost is Baht 160mn.

Post-flood rehabilitation will take at least 6 months. Meanwhile the government must focus on lowering the water level. Longer term visas are needed for engineering technicians while duties on imported raw materials should be exempted, urged Mr. Narong Lertkitsiri, Chairman, Toray International (Thailand) Co., Ltd.

“We hold daily meetings but planning is difficult without clear-cut information. The government should bring in non-partisan experts to solve the problem. The longer the crisis lasts, the more damage will incur,” said Mr. Narong.

According to MITI data base, 447 Japanese textile companies (20% of the total number of Japanese companies operating in Thailand) have been affected by mother of floods. 8 production bases of 5 companies within the Toray Group, have stopped producing polyester yarn and nylon; likewise Teijin has also stopped producing polyester yarn.

Thai Kurabo‘s protective wall remained effective for 10 days before it was partially dismantled by local community. Since then 1-meter flood water forced the company to suspend operation. As the factory remains inaccessible, total damage can’t be estimated. Outstanding orders have been outsourced to allied factories while 45% of workforce living on factory premises have evacuated upcountry, having received their legal wages, said Mr. Boonthong Kongpakpaisarn, Director & Vice President.

Constructed 50 centimeters above Vibhawadi Road level and 5km away from Navanakorn Industrial Estate, K. Cotton & Gauze’s raw material warehouse was nonetheless inundated. Only 20-30% of employees living near Navakorn Road faced travel hazard, the factory shut down from October 27 to November 7 due to health & hygiene factors but they were paid legal wages.

“The company has no income, only expenses and transportation costs have risen several folds. The government can help by subsidizing wage costs as well as water and electricity charges,” said Mr. Pravit Karnjanapinchote, Sales Executive Director.

Textile factories located in 5 industrial estates which have succumbed to the flood can no longer supply inputs such as automotive textiles while domestic consumers are limiting expenses to bare essentials. Nonetheless, 85% of Thailand’s textile capacity is located in3 textile production bases at Samutprakarn, Phrapradaeng and Omyai area, has not been flooded hence output can be partially sustained.

“Factories that have shut down can refer export orders to me and I will forward them to FTI for execution. Thai textile industry can survive if we cooperate closely with each other. This crisis can actually help to strengthen local capabilities,” enthused Mr. Somsak Srisuponvanit, Chairman of textile industry, The Federation of Thai Industries and President, The Thai Weaving Industry Association

170 out of about 1,000 SME textile factories located in 13 Northern provinces had already been affected by the flood. Large scale plants located in precincts surrounding Bangkok Metropolis will take at least 1 year to recover while raw materials and finished goods can’t be delivered on time, causing buyers to turn elsewhere. Electronic equipment damaged by the flood can either be sent to the Institute’s lab; the Electronic Institute will also send experts to repair them. We urge local enterprises to focus their efforts and resume their development trend,” said Mr. Virat Tandaechanurat, Executive Director, Thailand Textile Institute.