Thai -Gerrman plant closes down

Thai-German Products closes plant, shares down
Mon Mar 16, 2009 11:16pm EDT


BANGKOK, March 17 (Reuters) - Thai-German Products TGPR.BK, Thailand's leading stainless steel pipe maker, said on Tuesday it had shut down all production at its plant in the eastern province of Rayong, which would affect 5-7 percent of its annual sales.

The news sent its stock down 3.85 percent to 0.25 baht at 0302 GMT, while the overall Thai stock market was 0.05 percent lower.

The shutdown was mainly due to a dispute between the company and its labour union, which had demanded bonuses and other benefits for the 2008 performance, the company said in a statement.

Thai-German has more than 4,000 tonnes of finished goods and raw material which should satisfy sales for at least four-to-six months, it said.

The company has combined capacity of more than 50,000 tonnes a year of stainless steel pipes, tubes and sheets for industrial use. (Reporting by Khettiya Jittapong; Editing by Alan Raybould)

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