Western Digital has suspended its production operations in Thailand due to a massive flood in the region.
As a result of flooding, hundreds of people in the region have died while thousands have lost their jobs. Water entered WD's production center in Bang Pa-in Industrial Park submerging some of the equipment.
According to an article on Business Week, the company also believes that its manufacturing unit in Navanakorn Industrial Park may also be flooded.
The disruption in production will surely affect the company’s business operations during the quarter ending in December. Western Digital, which also has plants in Malaysia, Singapore and the US, makes hard drives for PCs, laptops and other storage products.
The news could impact HP’s operations because Western Digital is the biggest supplier of hard drives to the company.
“Western Digital is the biggest hard disk drive supplier to HP,” said Auriga analyst Kevin Hunt to Market Watch, adding that the disruption in its production operations “could mean numbers [for HP] due to inability to get disk drives."
In Thailand, several industrial parks have been affected by the flood with the automotive and electronic industries bearing the major brunt of it all.