HIDAJournal 2012 AUTUMN

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HIDA Journal No. 1 ● AUTUMN 201212SANALLOY INDUSTRY (THAI-LAND) has a factory in the Rojana Industrial Park located in Ayutthaya. As a result of last year’s floods the factory was covered in flood water for about one and a half months. These waters made our equipment and machinery inoperable. We evac-uated temporarily to the outskirts of Bangkok during that time and set up a provisional office to continue with our sales and marketing activities. However, after the flood waters receded, we were faced with large amounts of sludge and rust. This left us unsure of where to start the cleanup. At the start of 2012 we began by cleaning up the factory and put-ting things in order. We moved our office back to Ayutthaya in the middle of February, but we have only been able to restart a part of our factory operations since then. There are two reasons for this. First is because it has taken a lot of time for the prop-erty insurance appraisal to be conducted on our equipment and machinery damaged in the floods. Secondly, it has been difficult for us to determine if Thailand's measures to counteract future floods are effective. We have been forced to purchase large equipment observing the progress of the flood measures with financial problems. Although this flood caused unprecedented damage, companies that want to restore operations as quickly as possible continue to face serious situations. Fortunately our com-pany was able to arrange for production to be shifted to our head office in Japan. This helped keep any impact on our customers to a minimum. If we could not accomplish this, we could have lost our precious customers. The extent of this type of secondary damage from the floods will likely become clearer in the future. Nevertheless, we cannot simply stand idle. We have been train-ing our employees that are candidates for leadership positions to help improve their technical and management skills. First, following our participation last year we continue to use AOTS (currently HIDA) training programs. We have dispatched three of our employees to Japan since the end of May 2012. In addition to the six employees that have already completed their training, these are the human resources that we expect will be a driving force behind our company after we restart operations. This is why I hope that they are able to absorb a lot of informa-tion and skills during their time in Japan. The remaining candidates for leadership positions, including those that have already completed their training in Japan, are re-ceiving training on inspection techniques. They are also learning about how our products are actually being used through practical training at the sites of our customers. Currently we are replacing equipment and machinery thanks to financial assistance provided by our head office. We plan to re-start full-scale operations around the end of November 2012. However, insurance companies and re-insurance companies are not in a position to payout large amounts of claims. If another flood strikes in the meantime, we will need to pay for the damages ourselves. If this dire situation occurs, we will not longer be able to maintain our business continuity. We are examining a variety of measures, but we hope that the governments of Thailand and Japan as well as other public institutions will create flood measures and support the insurance industry so that we can ensure the continuity of our business with peace of mind. Managing Director NakaiRojana Industrial ParkSANALLOY INDUSTRY (THAILAND) CO., LTD.Managing Director Toru Nakai[SANALLOY INDUSTRY (THAILAND) CO., LTD.]Location: Ayutthaya Province, Thailand (Rojana Industrial Park)Established: March 2005Description of business: Manufacture and sale of ce-mented carbideOverseas News: Thailand after the floodsSoon one year will have passed since the major floods struck Central Thailand in 2011. Although it took up to two months for the water to recede, the recovery process was difficult and many companies have still yet to restore operations at their factory even now. In addition, companies that have restored factory operations are now facing new problems. Regardless of this situation, there are many companies that are putting efforts into human resource development to prepare for the future. At the beginning of July 2012 we visited some of the areas damaged by the floods and interviewed two companies that are currently using HIDA programs about their current situation.[Date of interviews: July 12, 2012] Inside the factory where a mark of the flood waters still remains on the wallMachinery made inoperable as a result of the floods. A flood wall under construction off site.

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