Rayong steel company suspends operations due to lack of demand
Nippon Steel Steel Processing (Thailand) Company, in Rayong province, has announced a temporary suspension of its operations starting November 9th, citing a steady drop in sales.
The Thai affiliate of Japan’s Nippon Steel, sexplained that, as there are 24 working days in November, if all its employees work full-time, the company’s output of steel will far exceed customer demand.
This makes it necessary, the company said, to suspend operations at its main office and at its factory from November 9th, in accordance with the Labour Protection Act.
The company has assured all its employees that they will receive 75% of their salaries during the suspension, adding that it may need to retain some employees on full time work and they will be paid as normal.
The company did not say how long the suspension will last.
Meanwhile, a Facebook user called Jim Bandon posted a picture of piles of ID cards belonging to employees of the Hi Trend Company in Si Racha district of Chon Buri. The cards were apparently left by workers after they were informed of the sudden closure of the company.
Previously, about 400 workers were laid off after their car tyre canvas plant was closed down due to declining product demand.