LEAD: Japanese car makers to re-open plants in flood-hit Thailand

Nov 10, 2011, 10:31 GMT

Bangkok - Two Japanese automotive giants on Thursday announced plans to re-open plants in Thailand, after being forced to shut down factories because of supply shortages caused by floods.

'Mitsubishi Motors will restart our production in Thailand on November 14,' company resident Osamu Masuko said after paying a courtesy call on Thai Prime Minister Yingluck Shinawatra and handing over a 2-million-baht (65,000-dollar) donation.

'We will not leave Thailand,' the executive said.

Although Mitsubishi Motors Corp's factory in Laem Chambang province was not hit by the floods, that were concentrated in the central plains and Bangkok, the disaster disrupted supplies of parts and components, forcing it to shut down since October 19.

Toyota Motor Corp, with factories in Samut Prakan and Chachoengsao provinces, has also announced plans to reopen on November 21.

Honda Motor Corp, however, is not expected to reopen its facilities any time soon.

Honda's main production base was the Rojana Industrial Park in Ayutthaya province, which was flooded by runoff from the Chao Phraya River on October 5 and remained under two metres of water Thursday.

'This is an improvement,' Rojana's marketing director Kosit Sombatthawee said in an interview with dpa. 'Last week it was three metres deep.'

The park has constructed a new wall around the compound and has started pumping water off the premises.

'I think it will take 15 to 20 days to pump all the water out,' Kosit said.

Despite the shutdown, Honda on Thursday announced that after operating for over 47 years in Thailand 'the company will not move its production to another country.'

'Although Honda's automobile manufacturing facilities are currently affected by the flood, the company still supports its staff and workers by paying remuneration,' Honda said in a statement.

Thailand has been hit by its worst flooding in five decades this monsoon season, triggered by usually heavy rains that filled reservoirs to overcapacity and caused river to break their banks.

Altogether 533 people have died in the floods over the past three months. The floodwaters have caused billions of dollars in damage to farm lands, industry and private property.

Runoff from the floods continued to threaten the capital Bangkok Thursday, although authorities have hinted of an end in sight.

The Irrigation Department said Wednesday that nearly half of the 14 billion cubic metres of northern runoff that has threatened Bangkok for the past month had already flowed into the sea, the Bangkok Post reported. Another 3 billion cubic metres had entered the Chao Phraya River, leaving about 5 billion cubic metres to deal with.

Boonsanong Suchatpong, the department's spokesman, said Bangkok had the capacity to drain 400 million cubic metres of water out of the city each day, so the city could be pumped dry in around 11 more days.

While authorities have stopped water from flowing into inner Bangkok from the north at the Bang Sue Canal barrier, floods were still reported in the western and eastern parts of the city.