Today, WD announced that it is halting the production of hard drives in its facilities close to Bangkok, Thailand due to severe flooding. Although the company's employees are safe and the facilities are operational, the flooding has created problems with the region's infrastructure including transportation and utilities. WD says it is currently working with its suppliers to maximize throughput and availability of parts, but it's too early to say how much of an impact this will have on the production of hard drives.
WD Reports Impact on HDD Production Due to Severe Flooding in Thailand
IRVINE, Calif., Oct. 12, 2011 /PRNewswire via COMTEX/ -- Western Digital Corp. (NYSE: WDC) today announced that production of hard drives in its facilities close to Bangkok, Thailand, will be constrained in the current quarter due to the severe flooding in Thailand. The flooding is causing problems with the region's infrastructure, including transportation and utilities, and has resulted in the inundation of some supplier facilities and employee homes. The company is gratified to report that its approximately 37,000 Thailand-based employees are deemed safe at this time.
The company is working with its suppliers to maximize throughput and availability of parts in order to best meet the needs of its customers.
In the quarter ending July 1, 2011, WD shipped approximately 54 million hard drives from its facilities in Thailand and Malaysia, with approximately 60 percent coming from its Thailand sites. The company's Thailand operations source much of its supply of components from local suppliers.
While WD's facilities in Thailand are operational, production has been suspended on a temporary basis to protect its employees and its facilities and equipment against water ingress. The company indicated that conditions associated with the continued flooding are evolving quickly and the extent of the impact on its operations in Thailand cannot yet be fully determined. The company will provide further updates on the situation, including on its investment community conference call on Wednesday, October 19, 2011.