It failed in Japan but the shock reached ‘Thailand’.

Following news reports that Funai (Thailand) Co., Ltd., Nakhon Ratchasima Province, announced the closure of its factory and laid off all 862 employees in Thailand. There are news reports in Japan that the parent company in Japan is Funai Electric, which is a radio receiver company. Sound and image recording equipment and duplicating equipment It has filed for bankruptcy proceedings in Japan. which the court approved last week

The Japan Times and Asahi websites reported that Funai Electric Company, a mid-sized Japanese electronics manufacturer and supplier to Walmart, was granted permission by a federal district court to begin bankruptcy proceedings on October 24, after the company went against a blow from increasing competition from Chinese and “South Korean” manufacturers.

According to data from Tekoku Databank, Funai Electric Co., Ltd., based in Daito City, Osaka Prefecture, had debts of about 46.1 billion yen (about 10 billion baht) at the end of March 2024.

Founded in 1961, Funai is an important OEM in the electronics sector both in Japan and abroad. But the company faces stagnation in the North American market and strong competition from Chinese competitors. After the global financial crisis in 2008, as well as being affected by the problems of beauty equipment companies in the group.

In the early 2000s, Funai had over 30% of the VCR market in the United States and 50% of the TV/VCR combo market in Japan At its peak in fiscal 2006, the company had annual sales of nearly 400 billion yen.

However, since the late 2000s, Funai has faced increased competition from manufacturers in China and South Korea. Due to a decrease in sales and continuous losses.

Funai Electric Co. acquired by Shuwa System Holdings Co. and was listed in 2021, before becoming a subsidiary of Funai Electric Holdings Co. last year.

The Ministry of Labor orders assistance in handling workers

Mr. Phumiphat Mueanchan, spokesperson for the Ministry of Labor, revealed that Mr. Pipat Ratchakitprakarn, Minister of Labor, has ordered the continuation of support and compensation for the employees of Funai (Thailand) Co., Ltd., Nakhon Province Ratchasima, after hearing that news The head office in Japan went bankrupt, resulting in Funai (Thailand) Co., Ltd., a company that produced radio receivers . Sound and image recording equipment and duplicating equipment Your business had to close and lay off all employees From the investigation, it was found that the company has a total of 862 employees, divided in 310 males and 552 females.

A spokesperson from the Ministry of Labor said that the Nakhon Ratchasima Regional Labor Office informed that on October 29, 2024, that company had temporarily suspended operations. From 1 – 30 November 2024 due to the parent company declaring bankruptcy to the Japanese court. Affects the supply of raw materials used in production. The company will pay wages to workers at a rate of 75 percent of wages in accordance with Section 75 of the Labor Protection Act 1998.

The Minister of Labor is concerned about all the workers affected by this. and special agencies of the Ministry of Labor to collect data and support workers in accordance with the law to deal with all aspects, including wages, social security benefits, and others.