Samsung closes hard-disk-motor plant in Korat, lays off 1,400

[webfact]

Samsung closes hard-disk-motor plant in Korat, lays off 1,400
The Nation

BANGKOK: -- More than 1,400 people have been put out of work as Samsung Electro-Mechanics (Thailand) has shut down its operations in Nakhon Ratchasima and laid off employees because of low orders.

It was the factory's second round of job terminations this year. The company says it is accelerating the compensation process for this round and will finalise it next week.

Pongwut Petchwichien, of Nakhon Ratchasima's Employment Department, said the agency had provided a service centre to assist the unemployed. The centre will enable them to submit the relevant documents to get the compensation from the company.

More than 300 employees have applied for the compensation since the centre was established.

Source: http://www.nationmultimedia.com/breakingnews/Samsung-closes-hard-disk-motor-plant-in-Korat-lays-30264648.html


-- The Nation 2015-07-17

[djjamie]

The global downturn has certainly impacted Thailand and this is another blow for its citizens.

The Junta have done a wonderful job in guiding the economy through it, but unfortunately it cannot shield the country from outside market forces.

Lets hope the economy rebounds soon.

[MaeJoMTB]

Samsung (and everyone else) are leaving (to start new plants in Vietnam) due to fears of civil unrest following the military overthrow of democracy.

Nothing to do with global economic downturn.

Edited July 17, 2015 by MaeJoMTB

[peterjackson]

More and more devices are using Storage Mediums that don't require a motor and the advent of cloud storage and server based applications hasn't helped the plight of HDD manufacturing plants.

[konying]

Samsung (and everyone else) are leaving (to start new plants in Vietnam) due to fears of civil unrest following the military overthrow of democracy.

Nothing to do with global economic downturn.

I do not think business closures have anything to do with military overthrow, this was not the first one.

Vietnam offers better business and tax incentives plus reliable hard working labor at cheaper prices.

Pure economics.

There is less demand for products, costs must be reduced.

Moving elsewhere, works out cheaper than staying, plus tax breaks saving few more hundred million over the years

[bamnutsak]

Samsung Electro-Mechanics says to exit hard disk drive motor business

SEOUL

Fri Jun 26, 2015

South Korea's Samsung Electro-Mechanics Co Ltd said on Friday it will exit the hard disk drive motor business and sell assets related to the operations in order to concentrate its efforts on its core businesses.

The company, which supplies smartphone components such as camera modules to sister firm Samsung Electronics Co Ltd, did not give additional details on its plans including who it might sell the business assets to.

Samsung Electro-Mechanics said earlier this month that it was contemplating exiting non-core businesses.

http://www.reuters.com/article/2015/06/26/us-samsung-elec-mec-hdd-idUSKBN0P60G120150626

Samsung is still strong in SSD.

[djjamie]

Samsung (and everyone else) are leaving (to start new plants in Vietnam) due to fears of civil unrest following the military overthrow of democracy.

Nothing to do with global economic downturn.

Any perceived unrest by a small minority of the population has nothing to do with this decision. Some are so desperate to pin anything on the Junta they are blinded by reality.

This is pure economics. It is not secret there is less demand. It is reported here that demand has dropped for this product and that article has nothing to do with Thailand.

Factories don't make multi billion dollar business decisions on a threat that may or may not eventuate. A Samsung shareholder won't appreciate Samsung spending billions in moving out of Thailand every time there is a perceived threat only to return when the threat disappears. How many coups has Thailand had and Samsung has gone no where nor have other multi national companies.

And as for your simplistic analysis they are leaving Thailand to go to Vietnam is quite incorrect. If they were building a hard drive factor in Vietnam then that would at least add credence to your argument, but they are not. They are building a smart phone factory. Why? They want to concentrate on core business functions. And after years of exhaustive business analysis (way before any coup was even a reality) by the board of directors, CEO and leaders of the company they decided Vietnam was a more financially viable alternative than say China, Taiwan, Cambodia or Thailand to concentrate on this core function.

I can just imagine the CEO telling its shareholders "We are moving out of Thailand because of a threat that is not really there"!! He would be committed to a mental institution to the sound of the share price plummeting.

Edited July 17, 2015 by djjamie

[Thai at Heart]

Everything is moving away from disks. This was inevitable

[freebornjohn]

It was interesting to read that the Employment Department Service Centre will enable the laid-off workers to submit the relevant documents to get compensation from the company. I was under the impression that, under Thai Labour Law, it was the responsibility of the employer to pay, and the right of the laid-off employee to receive, severance pay with his or her final pay-packet. The amount to be based on each former employee's wage rate and years of service.

[smutcakes]

It was interesting to read that the Employment Department Service Centre will enable the laid-off workers to submit the relevant documents to get compensation from the company. I was under the impression that, under Thai Labour Law, it was the responsibility of the employer to pay, and the right of the laid-off employee to receive, severance pay with his or her final pay-packet. The amount to be based on each former employee's wage rate and years of service.

I would expect/hope that it is just more a soundbite from the EDSC, and that Samsung will be paying the severance as per their legal responsibility, but the EDSC would help should someone feel aggrieved etc

[JohnThailandJohn]

Samsung (and everyone else) are leaving (to start new plants in Vietnam) due to fears of civil unrest following the military overthrow of democracy.

Nothing to do with global economic downturn.

Actually nothing to do with Vietnam or Thailand but simply Samsung trying to get out of the declining hard drive business. But certainly companies will turn are going to turn to less developed neighbors with cheaper labor forces when it comes to Manufacturing ... just not the case here.

[chainarong]

There will probably be more factories closing down over the next year as the economy's slow down all over the world and other products come on line , you also can become a dinosaur and maybe the sovereign risk as far as the Junta is concerned could also play a part if they are around for the longer term, I don't think there is any country that hasn't got problems of one kind or another .

[smutcakes]

In more likelihood according to DJJaime the NCPO are doing such a fantastic job economy wise that Samsung would simply not be able to compete with the competitors falling over themselves to get into the Thai market.....

[Misterwhisper]

1,400? Can't wait to see what impact that will have on the allegedly near-zero unemployment this country regularly reports to the (secretly laughing) press.

[Skywalker69]

Samsung (and everyone else) are leaving (to start new plants in Vietnam) due to fears of civil unrest following the military overthrow of democracy.

Nothing to do with global economic downturn.

BS!

[Anthony5]

The global downturn has certainly impacted Thailand and this is another blow for its citizens.

The Junta have done a wonderful job in guiding the economy through it, but unfortunately it cannot shield the country from outside market forces.

Lets hope the economy rebounds soon.

Could you give an example how the junta guided the economy through the global downturn.

Just ONE is enough to satisfy me.

[petercool]

A post with an unfounded accusation was removed along with a reply quoting that. Keep it civil please.

[rainman333]

this is not a surprise for anyone who has uses hard drives on a regular bases over the years.

Samsung used to make good quality drives, that was about 7 to 10 years ago. It got to a point where almost everybody were buying them

over WD, Seagate, etc.

But something changed with them over the last 5 or so years, and their drives were very bad, failed alot and nobody who is serious about their data

buys them anymore.

[djjamie]

The global downturn has certainly impacted Thailand and this is another blow for its citizens.

The Junta have done a wonderful job in guiding the economy through it, but unfortunately it cannot shield the country from outside market forces.

Lets hope the economy rebounds soon.

Could you give an example how the junta guided the economy through the global downturn.

Just ONE is enough to satisfy me.

They rebounded tourist numbers to record levels after the reign of terror in 2013/14. Though admittedly that was not hard after bringing peace and stability to the country.

I can offer heaps of statistics from the same website the below graph came from to show that the Junta have been very active in strengthening the economy. Of course some will refer to what Watana said without any factual back up so they can denounce the Junta for a perceived failure.

Look no further than this Samsung factory shutting in Thailand article to see how desperate some are to pin failures on the Junta without evidence. Of course I provided facts on that article as well and I expect a personal attack on me or my family for providing that evidence. It has happened before when I provided facts and it will happen again. That is the way of a red supporter.

But predictable you will have an excuse for any facts I provide which is why it is pointless debating it with some.

If the reds suggested the sky was pink with purple polkadots I would have a hard time convincing you it was actually blue and in fact some would blindly argue it was pink against all sanity and reason. Why? It goes against the red agenda.

I provided undeniable facts below. There is your ONE....

And as predictable as night follows day you will have an excuse to denounce the facts.

Edited July 17, 2015 by djjamie

[Manbing]

Samsung (and everyone else) are leaving (to start new plants in Vietnam) due to fears of civil unrest following the military overthrow of democracy.

Nothing to do with global economic downturn.

I do not think business closures have anything to do with military overthrow, this was not the first one.

Vietnam offers better business and tax incentives plus reliable hard working labor at cheaper prices.

Pure economics.

There is less demand for products, costs must be reduced.

Moving elsewhere, works out cheaper than staying, plus tax breaks saving few more hundred million over the years

Lots of posts missing a major point to add to the above.

HDD's are being replaced by Solid state drives in most domestic consumer technology - not all but most.

Thailand hasn't kept up with changing tech trends and other countries are grabbing market share.

Thailand needs a re-skilled and retooled workforce to participate in changing tech manufacture to eliviate the issues confronting world economies and move forward.

[BuaBS]

Samsung HDD devision was merged/taken over by Seagate , about 2 years ago ! No wonder HDD deteriorated , Seagate is not known for reliable drives. So this closure has nothing to do with the Thai government or world economy or relocating because of labour costs. Seagate is just cutting some fat away. HDD market is losing somewhat to the SSD's.

[Robert24]

Samsung (and everyone else) are leaving (to start new plants in Vietnam) due to fears of civil unrest following the military overthrow of democracy.

Nothing to do with global economic downturn.

companies are not worried about civil unrest. This is rubbish. Also I'm not sure where you have it from that Samsung is moving these jobs to Vietnam. But if they were doing it, it would be mainly for cost reasons. Same why some companies have moved factories from China to Vietnam.

[OOLEEBER]

I'll bet I still can't find a gardener.

[sammygood]

just the beginning

the magical 0% unemployment myth about to end

[hansgruber]

Samsung HDD devision was merged/taken over by Seagate , about 2 years ago ! No wonder HDD deteriorated , Seagate is not known for reliable drives. So this closure has nothing to do with the Thai government or world economy or relocating because of labour costs. Seagate is just cutting some fat away. HDD market is losing somewhat to the SSD's.

Exactly.

Technology advances have made them redundant.

SSD will replace HDD entirely when prices drop.

[ramrod711]

The military government blamed for lack of rainfall, changes in technology and every other unfavorable topic that arises. I don't think a fair minded person would blame all the woes of the country on Prayut and his one year government. All you people who like to talk about Thaksins parties winning every election for the last 20 years might want to acknowledge those governments responsibility for some of the problems. Perhaps you believe that they did everything right, no problems on their watch. In that case, there really is no point in a dialogue with you.

[quandow]

Samsung (and everyone else) are leaving (to start new plants in Vietnam) due to fears of civil unrest following the military overthrow of democracy.

Nothing to do with global economic downturn.

I do not think business closures have anything to do with military overthrow, this was not the first one.

Vietnam offers better business and tax incentives plus reliable hard working labor at cheaper prices.

Pure economics.

There is less demand for products, costs must be reduced.

Moving elsewhere, works out cheaper than staying, plus tax breaks saving few more hundred million over the years

Economics includes considering the stability of the host country. Saying this never-ending coup, the following civil unrest and the muzzling of the media doesn't enter into the equation is naïve.

[fred Kubasa]

1,400 people in relatively high paying positions really means some 5,000 to 8,000 people, ( families) and

businesses, ( groceries/barbers/vendors ), are now in a terrible financial bind. No money to go elsewhere and little hope of local

employment.

[rametindallas]

Samsung (and everyone else) are leaving (to start new plants in Vietnam) due to fears of civil unrest following the military overthrow of democracy.

Nothing to do with global economic downturn.

due to fears of civil unrest

Care to offer a link/proof to back up your, very obvious, propaganda?

Yingluck Thaksin and Co. raising minimum wages 40% virtually overnight, even in cheap-to-live Korat, just might have been a factor but since you are such a big Thaksin supporter, you would never admit that. Many on this forum predicted this very thing; that Thailand would price itself out of the market. Better low wages than no wages.

Will you be moving to Vietnam to demand they raise wages to be the same as Thailand's?

(and everyone else) are leaving

Is there no limit to your hyperbole?

.

Edited July 18, 2015 by rametindallas

[Fat Haggis]

You're taking the piss !! Civil unrest b/s has been coming from the Junta for months now, why do you think they invoked article 44? Why do you think Martial Law was kept till then? Pretty sure one of the reasons for the delay in stepping down from office by Prayuth was that there was "too much civil unrest to hold elections"

Article after article there are claims of coups, counter coups, brainwashing, dissent and foreign agencies trying to destabilise the country, most coming from the Junta themselves, have you noticed how quiet it's gone after the former 2nd Army Generals claims of two big political parties are going to mobalize millions to overthrow the Junta?