12 October 2011 10:30 [Source: ICIS news]
(adds more details, with recasts throughout)
By Nurluqman Suratman
SINGAPORE (ICIS)--Widespread flooding in ?xml:namespace>
The Thai capital of
In the provinces of Uthai Thani, Chai Nat, Sing Buri, Ang Thong, Suphan Buri,
The Thai economy is forecast to grow at 3.5% in 2011, barely half the pace of expansion recorded last year, according to the International Monetary Fund’s latest World Economic Outlook report in September.
With the devastation being wrought by the flooding, the projected slow GDP growth could be shaved by 0.6-0.9%, with the losses likely to be as high as baht (Bt) 80bn ($2.58bn), according to estimates of government agencies.
Some 1,215 factories encompassing various industries in 33 provinces are currently submerged in water, with some 41,099 workers affected so far, DBS Vickers Securities said in a research note.
In Lopburi province, Indorama Ventures Ltd has kept its wool yarns and polyethylene terephthalate (PET) polymers facilities shut since late September because of the floods, with no definite restart dates set, a company spokesperson said.
Petrochemical production in the country will likely be unscathed with its primary location at Map Ta Phut in Rayong province lying safely in the eastern coast of Thailand, industry sources said.
“The floods will mostly impact downstream industries such as electronics and automobiles, but no significant impact on petrochemicals is expected,” Lertchai Kochareonrattanakul, a Bangkok-based analyst at Fitch Ratings.
“Most of the plants in the chemical sector are located in Chanburi and Rayong provinces, so they are still safe as they are located quite far away from the central areas,” he said.
“If flood waters reach
Putting up additional flood barriers, as well as opening up of canals, is under way in
Within the capital, the 30,000 tonne/year expandable polystyrene (EPS) plant of
“Distribution is the local market is problematic due to the flood”, the source said.
Meanwhile, a dwindling of demand from
North of the Thai capital, the
The production facilities of Japanese automakers Honda Motor Corp and Toyota Motor Corp were among those affected by the flooding in areas surrounding
A disruption in supply of automobile parts can be expected next week, as floodwaters make transportation by rail and road difficult, said a source at a major Thailand-based automobile parts supplier.
“Most of the car manufacturers have already shut [production] except for General Motors and Nissan…I think they will shut soon as major suppliers have stopped distribution,” said the source.
The automotive industry is an important pillar of demand for petrochemicals and is also a large end-market for materials such as polypropylene (PP), nylon, acrylonitrile-butadiene-styrene (ABS), polyurethane (PU) flexible foam, synthetic rubber, as well as paints and coatings.
($1 = Bt30.97)
Additional reporting by Quintella Koh, Salinla Tulyasatien and Clive Ong
Please visit the complete ICIS plants and projects database
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections