Several factories in Thailand announce shutdown

Iron and steel factories ranked second in the closures, categorized by factory investment value, with 1.45 billion baht (about USD 43.8 million).

Between January and May, a total of 488 factories from different sectors shut down operations, totaling 14 billion baht (about USD 422.9 million) in investment and resulting in the layoff of 12,551 employees.

Industry Minister Pimphattra Wichaikul attributed the closures and layoffs to local producers' inability to compete with low-priced imports. Some companies have chosen to shift production to neighboring countries with favorable trade agreements.

The EAF Association of Long-Finished Steel Producers had previously warned that closures in the local steel sector were imminent due to rising Chinese imports, which have severely impacted capacity utilization, falling as low as 28% by early 2024.

In line with the current situation, the Office of Industrial Economics is forecasting minimal growth in Thailand's Industrial Production Index for 2024, revising the previous forecast of 2-3% to around 1%.