Japan to support firms hit by Thai floods
TOKYO—Japan Tuesday announced provisions to help its companies hit by Thailand’s worst flooding in decades, as supply disruptions force firms to shutter plants and production is hit at home.
As concerns rise about the impact of Thailand’s flooding on Japan’s recovery from the March earthquake — already complicated by a soaring yen and a slowing global economy — Tokyo unveiled a loan program to aid flood-hit firms.
The trade and industry ministry said Tuesday it will expand loan guarantees and trade insurance programs to help Japanese firms deal with the impact of production problems caused by the disasters that have left hundreds dead and dealt a heavy blow to Thailand’s economy.
It will also provide guarantees to yen-denominated loans issued by the Thai government.
The Bank of Japan (BoJ) also said Tuesday it will collaborate with the Bank of Thailand in providing emergency liquidity to companies affected by the floods.
“One aim of this measure is to facilitate the funding of financial institutions operating in Thailand including Japanese banks, which provide financial services to firms, including Japanese firms operating in the flood-affected areas of Thailand,” the BoJ said in a statement.
It added that details would be made public “in due course”.
Supply disruptions have forced Japan’s biggest companies including Sony and automaker Toyota to temporarily shut plants in Thailand.
On Tuesday Toyota said the impact was also being felt at home as it was forced to reduce domestic production by about 10 percent due to a lack of supplies.
Toyota has stopped overtime work at all of its factories in Japan at least for five days through Friday, which will cut its domestic output by about 6,000 units, or 1,200 per day, spokeswoman Shiori Hashimoto said in Tokyo.
Honda Motor also said it suspended production of motorcycles in Bangkok’s Ladkrabang area from Tuesday through to at least Saturday.
“The factory producing motorcycles remains intact from the flood, but parts supplies have been disrupted,” said Honda spokeswoman Tomoko Takemori.
The suspension in motorcycle output came after Honda’s car assembly factory in Ayutthaya, central Thailand, was paralyzed by the flooding.
“The plant in Ayutthaya has been submerged, and we don’t know when it can resume operations,” she said.
