Western Digital 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 reported that its approximately 37,000 Thailand-based employees are deemed safe at this time.
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.