Reports: Thai tyre and rubber industry slowing after Japan earthquake
Thai news reports are warning that “over 30,000 workers in the rubber-based industry have been affected” following the earthquake/tsunami disaster that hit Japan recently. Quoting figures issued by the Federation of Thai Industries (FTI), the reports cited FTI Rubber Based Industry Club President Dr Chayo Trangadisaikul as saying: “15 domestic car tyre manufacturers have reduced production capacity by 30 – 40 per cent and cut overtime operations; thereby, over 30,000 workers in the industry are affected.”
In addition car tyre production is said to be slowing down after the auto industry reduced vehicle production by 150,000 units in the second quarter this year due to car factories lacking supplies of auto parts from Japan. Dr Chayo also reported that the Thai rubber industry could shrink by 20 per cent and lose approximately 900 million baht in revenue in the second quarter. He added that the damages could worsen if the Thai automotive industry does not resume normal production levels in the third quarter this year.
Dr Chayo’s advice was for entrepreneurs to export “para rubber” and car tyre materials to other countries such as Russia, China, Brazil and India where demand is said to be remaining high, along with other ASEAN countries such as Indonesia, the Philippines, Vietnam and Myanmar.