Mitsubishi to cut risk by making more parts | Bangkok Post: business

Kang Yong Electric Co, the manufacturer of Mitsubishi electrical appliances, will consider producing more strategic spare parts as part of its long-term plan to reduce business risk in the event of flooding.Chairman Praphad Phodhivorakhun said the company has produced some spare parts at its factories for a while, but the floods made the company realise that it does not want to experience an opportunity loss from a lack of spare parts.

Though Mitsubishi Electric factories on Bang Na-Trat Road and at the Amata Nakorn Industrial Estate in Chon Buri province were not directly affected by the flooding, air-conditioner parts experienced a supply-chain disruption.

The company ordered parts from other countries and other sources, but transportation had to be rerouted, delaying delivery. This meant Kang Yong had to bear the increased expenses.