ECCO has temporarily suspended production at its facilities in Ayutthaya, Thailand, after the country’s worst flooding in 50 years disrupted its operations on Oct. 5.
Torrential monsoon rains and flooding in central Thailand forced ECCO to close facilities and evacuate personnel as waters rose inside the factories. ECCO owns and operates a number of production activities in Thailand, including a tannery, upper production and sole montage.
Floodwaters and stormy conditions have limited access to the Ayutthaya facilities, making it difficult for ECCO to fully assess inventory or estimate the time of recovery. A first assessment indicates that it will be several months before the facilities are operational again and this may affect future deliveries to some extent.
“We are concentrating on minimizing the effects on our customers across all markets. We have seen a very rapid response from our global supplier network and an overwhelming commitment from them,” says Michael Hauge Sørensen, chief operating officer.
ECCO said it is fortunate to be able to recoup capacity elsewhere in its supply chain. For example, ECCO will be activating extra shifts in its factory network in Asia and Europe and the Danish footwear company is also intensifying efforts outside of its supply chain to ensure a fast resolution.
In Thailand alone, ECCO employs more than 5,000 people. The staff is safe, but many of them have lost their homes and all of their belongings. After the evacuation on Oct. 5, ECCO primarily focused on relief efforts to ensure the safety and wellbeing of all its employees, supplying them with food and shelter.
The massive floods in Thailand have damaged the homes and livelihoods of millions of people across approximately three quarters of Thailand provinces.
