#ThaiFloods

There had been rumors that Honda might flee Thailand after Honda’s Thai operation literally drowned. These rumors have been put to rest . The Nikkei [sub] says that Honda decided to build a second factory in Thailand. The plant is said to be placed into the southeastern part of Thailand where the risk of flooding is lower.

Honda’s plant in Thailand had been submerged for months. Now that the flood waters have finally retreated, Honda assesses the damage. The plant is a near write-off.

“The restoration work will almost be equal to making a plant from scratch,” a Honda executive told The Nikkei [sub]. Honda decided to completely rebuild the plant located in the Rojana Industrial Park in Ayutthaya Province, central Thailand, at a cost of around $650 million.