Shut factory to axe 900 jobs
LAMONPHET APISITNIRAN
An apparel maker owned by Hong Kong’s TAL Group will close one of three Thai factories because
of the sluggish global economy.
Some 900 employees will lose their jobs by the end of September, says Wallop Witanakorn, vicepresidentof
the Federation of Thai Industries (FTI).
Thai Garment Export, a subsidiary of TAL Group, is one of the five biggest garment companies in
Asia, and TAL is the world’s leading garment producer and exporter.
Mr Wallop said Thai Garment Export runs three factories in Thailand: in Om Noi is Samut Sakhon
province and in Prachin Buri, where the one factory will be closed.
He said the global recession hurt Thai Garment Export by causing a rapid decline in orders,
prompting the company to gradually cut the factory’s workforce from 2,000 to the current 900.
Company executives declined to comment.
“I was told that they are not ready to talk to the press and asked the FTP to represent then and make
the announcement to the public,” Mr Wallop said.
He said Thai Garment Export was one of the manufacturers that sufferedfrom the Yingluck
Shinawatra government’s 300-baht daily minimum wage.
Other garment companies mostly survived by relocation production from Thailand to lower-wage
Cambodia, Laos, Myanmar and Vietman(CLMV).
Those factories have enjoyed the Generalized System of Preferences offered by the US and EU to
the CLMY countries, which have a lower income pre capita compared with Thailand.
“About 30 garment factories moved to other countries,” Mr Wallop said.
Thai Garment Export is one of a few companies that have not relocatedproduction to neighbouring
countries.