It had announced earlier that its factory in Thailand was inundatead with 2.1 ft of water. The flood waters receded in Nov 2011. The Thai plant is a small one with just 20 computerized machining equipment compared with 1200 in its Klang factories.
As there was some available capacity on the Klang factories, Notion was able to take orders from vendors that had large, submerged factories in Thailand . It had gained five new customers, all in the HDD sector.
These customers are NHK Spring, Minebea, Nidec, Toshiba and the Seagate group through Samsung. Some of these vendors may continue to outsource some of their business to Notion, depending on their intentions to reinvest in new machines.
Meanwhile Notion is preparing to re-equip its plant in Thailand as the 30 damaged CNC machines were covered by insurance. It may take one or two more quarters before the company sees overall orders back to normal. The Thai plants of WD, its principal HDD customer resumed production in Dec 2011, but the company and its various vendors are expected to fully restore production in their plant capacities.
While Notion’ direct exposure to the Thai floods was at its relatively small plant there, the Thai plants of both of its major customers – WD and Nikon – were inundated. That caused a major disruption of orders for Notion, which is waiting for business to normailise. Notion machines precision parts for Nikon, which is expected to be back in full production in March 2012.
Business from WD and Nikon will continue to be impacted jn the first half of 2012. Businesses will be stronger in 2013 with resumption for its core customers, boosted with orders from new customers.
As there was some available capacity on the Klang factories, Notion was able to take orders from vendors that had large, submerged factories in Thailand . It had gained five new customers, all in the HDD sector.
These customers are NHK Spring, Minebea, Nidec, Toshiba and the Seagate group through Samsung. Some of these vendors may continue to outsource some of their business to Notion, depending on their intentions to reinvest in new machines.
Meanwhile Notion is preparing to re-equip its plant in Thailand as the 30 damaged CNC machines were covered by insurance. It may take one or two more quarters before the company sees overall orders back to normal. The Thai plants of WD, its principal HDD customer resumed production in Dec 2011, but the company and its various vendors are expected to fully restore production in their plant capacities.
While Notion’ direct exposure to the Thai floods was at its relatively small plant there, the Thai plants of both of its major customers – WD and Nikon – were inundated. That caused a major disruption of orders for Notion, which is waiting for business to normailise. Notion machines precision parts for Nikon, which is expected to be back in full production in March 2012.
Business from WD and Nikon will continue to be impacted jn the first half of 2012. Businesses will be stronger in 2013 with resumption for its core customers, boosted with orders from new customers.
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