No raw materials from China forces closure of Kanchanaburi factory – 500 jobless

[rooster59]

No raw materials from China forces closure of Kanchanaburi factory – 500 jobless

 

People wearing protective facemasks leave the city commuter train station in Bangkok on January 31, 2020. – The World Health Organization declared a global emergency over the new coronavirus, as China reported on January 31 the death toll had climbed to 213 with nearly 10,000 infections. (Photo by Mladen ANTONOV / AFP)

About 500 employees of a company in Thailand’s western province of Kanchanaburi were abruptly notified by the management on Friday that they are being laid off, due to a shortage of raw materials normally imported from China.

 

The employees, including Thais, Filipinos and those from Myanmar, arrived at the Zica New Materials Company in Village 14, Tambon Huey Krachao, Huey Krachao district in the morning only to find out that the gates were locked, with a notice attached from the management announcing the shutdown of the office and factory.

 

Provincial labour and social welfare officials, as well as officials from the Internal Security Operations Command, were sent to meet with the shocked workers, most of whom admitted that they had not been aware that the company was in trouble after six years in operation.

 

Full story: https://www.thaipbsworld.com/no-raw-materials-from-china-forces-closure-of-kanchanaburi-factory-500-jobless/

 

-- © Copyright Thai PBS 2020-02-02

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[impulse]

I got a legally mandated severance when my contract in BKK got terminated after almost 6 years.  Something like 4 months, but that may not be exact since my brain leaks.  If they were legal, the Burmese workers should be entitled to a similar payout, not 2500 baht and a bus ticket.  

 

This is a cautionary tale, and explains (in part) why it should be hard for a foreigner to open a business.  The Taiwanese CEO here did the equivalent of a runner, probably owing millions of baht to his employees.  No telling what he owed to his suppliers.  And now, he's out of reach of Thai authorities.  If he were Thai, they'd have some leverage over him.  Now the guy can rinse and repeat in Vietnam, Cambodia or Laos. 

 

With 193 disgruntled former Burmese employees, I suspect he'll stay out of Myanmar...

 

[bronzedude]

The snowball is starting to roll. It's going to steamroll over a lot of low income Thais. The PM will probably say everything is 100 percent in control. He probably letting the Chinese PM know how to make a positive spin out of a negative situation. You have to feel for the average Thai. I know I do. 

[Don Mega]

The company is called Sica not zica.

 

they set up here for Thailand's " high-quality quartz mineral resources "...... I wonder what they were importing from China that a delay in shipment  has crippled the company..... The other issue is China shut down for the  Lunar New Year, seems they did not plan for that either !

http://www.sica-mtl.com/index_en.html

[natway09]

Just the excuse he needed to close the doors

[RichardColeman]

1 hour ago, Don Mega said:

I wonder what they were importing from China that a delay in shipment  has crippled the company.....

Lunchtime noodles probably

[spiekerjozef]

the PM won't be pleased after writing that letter.

[Elkski]

So it begins. 

[DrTuner]

It's an excellent chance for the west to restart their manufacturing industries and get rid of the dependence on China. Then slam the borders closed permanently.

[Chaaang]

3 hours ago, DrTuner said:

It's an excellent chance for the west to restart their manufacturing industries and get rid of the dependence on China. Then slam the borders closed permanently.

You are welcomed to try ???? Even toilet paper is being produced in China. West lost everything. Only if you are ready to return to 1940's you maybe get a chance.

You cannot restart something that had been destroyed.

And to re-built a factory + train the staff etc... do you imagine how much will it cost?

Your grandchildren's grandchildren will not be able to pay the cost...

[DrTuner]

24 minutes ago, Chaaang said:

You are welcomed to try ???? Even toilet paper is being produced in China. West lost everything. Only if you are ready to return to 1940's you maybe get a chance.

in the early 90's most of the stuff except some toy cars that were made in Hong Kong's walled city were produced outside China. It's only been 30 years, not a biggie to restart.

[ChouDoufu]

i suspect the there were other serious problems at the factory, and the owner is simply using the virus as a convenient scapegoat.

 

china is shut down for lunar new year, which the owner must have planned for.

 

regardless, materials take time to ship.  goods ordered before the festival are still in transit.  any shortage of materials won't actually show up here for another month.

[hotchilli]

17 hours ago, natway09 said:

Just the excuse he needed to close the doors

Exactly, this is BS... to close this quickly meant there were other underlying issues going on. To say you're out of materials this fast is ludicrous!

[Assurancetourix]

11 hours ago, DrTuner said:

It's an excellent chance for the west to restart their manufacturing industries and get rid of the dependence on China. Then slam the borders closed permanently.

 

Many (but not enough) European and American companies have already relocated their productions to the countries of origin;
but it is true that acceleration in this direction should be even faster before it is no longer possible;
one day next maritime transport will be really taxed up to the nuisances which it produces;
it has already started for air transport.

Besides, I do not understand why Apple and company continue to have their products manufactured in China; the factories that manufacture these products are almost 100% automated; there is very little manual labor.
Is it to avoid paying taxes in the USA?

[xtrnuno41]

easy way to say goodbye and close. Guess labor inspection should get into this, however cant do much about it. They can do about the people being paid for their services, rip the ceo's, owners from their money to pay wages.

Lots of work again for immigration, as work permits ends and all have to be send back home.