HDD manufacturers are considering (temporary) relocation
Hard disk drive (HDD) manufacturers are considering temporarily moving their production abroad.
They fear that the interruption of production due to the floods will lead to a shortage of HDDs in the global market.
The world's four top manufacturers are located in Thailand, accounting for 60 percent of world trade. Western Digital has suspended production at its two factories at Bang Pa-in (Ayutthaya) and Navanakorn (Pathum Thani); Seagate Technology (Samut Prakan and Nakhon Ratchasima) and Hitachi Global Storage Technologies (Prachin Buri) are still producing foreseeable problems. Toshiba is located at Navanakorn [This factory must also have been shut down].
Supplier Nidec, manufacturer of motors for HDDs, has had to close six of its seven factories, including the factory at Rojana. Other component manufacturers for HDDs on Rojana (Ayutthaya) include Minebea, Hutchinson Technology, Magnecomp Precision Technology, TDK and Furukawa.
According to a source, both HDD manufacturers and component manufacturers will try to shift production to other countries. Besides Thailand, HDD manufacturers have factories in Malaysia, Singapore, Philippines and China.
From time to time, a temporary relocation means a definitive end to the party.
Yes I think so too Hans. I fear for Thailand that even more industry will leave as the so-called strong Baht does not make it more interesting.
I had to search, first in my memory, then in a book, for a suitable passage from a book that fits nicely with the situation in Thailand in 2011.
This passage describes a situation in China 900 years ago.
With some mental gymnastics, this passage would be directly applicable to Thailand with some adjustments.
It's in English, I hope many can read this, translating didn't seem necessary to me.
James Michener
Hawaii
1959
What the Hakka, looking down on the recurring flood disasters, could never understand was this.
In the year 1114, with the aid of nearly 60,000 people, Hakka and Punti alike, the government built a great spillway which started above the Low Village and which was intended to divert the flood waters away from that village and many others.
And the idea was a capital one and would have saved many lives and property.
Except that greedy officials seeing much inviting land in the bottom channel and along its sides, reasoned: “Why should we leave such fine silted soil lying idle? Let us plant crops in the channel, because in nine average out of ten years there is no flood and we will make a lot of money.
Then, in the tenth year, we lose our crops, but we will already have made a fortune and we can bear the loss.”
But over a period of seven hundred years the Hakka and Punti noticed that the escape channel for the river was never once used with the resulting loss of life, crops and property.
And for this reason: “We can see there will be floods, and a great many people are bound to be killed, a huge amount of property will be destroyed and crops will be lost.
But if we open the floodgated to save the villages, our crops in and on the sides of the channel will be destroyed. Now let's be sensible, why should we allow the waters to wash away our crops in the channel in the one year we when we will be able to charge the highest prices for them?”
So the gates remained closed and the channel detoriated, and to protect one thirteenth of one percent around the villages near the channel and flood gates, all the rest was laid waste.
Flood after flood after flood swept down, and not once were the floodgates opened to save the people.
The backbreaking work of 60,000 peasants was used solely to protect the crops of a few already very rich government officials, whose profits quadrupled when the countryside was starving.
I know, China is not Thailand.
But, perhaps there are interests in the direction of agreements after all?
Very interesting article. Globalization is good for everyone in the long run, although individual people can only be finished.