China Water: June 10, 2008: Flood in south China disrupts factories.

http://www.reuters.com/article/marketsNews/idUST26850020080610?sp=true

Honda China plants stay disrupted from flood impact
Tue Jun 10, 2008 6:28am EDT


TOKYO, June 10 (Reuters) - Honda Motor Co (7267.T: Quote, Profile, Research), Japan's No.2 automaker, said on Tuesday its Chinese car and engine production remain disrupted after a week since heavy rains flooded two factories and cut off supply of parts.

Of its two car factories held 50-50 with Guangzhou Automobile Group Co, the 240,000 units-a-year plant will operate as usual on Wednesday for the first time in a week.

The other, 120,000 units-a-year factory, which procures engines from a damaged factory held by Honda and Dongfeng Motor Corp (0489.HK: Quote, Profile, Research), will be suspended on Wednesday.

Both factories build the Accord, Odyssey, Fit and City models.

The engine factory will operate only partially on Wednesday.

An export-only factory in Guangzhou which builds the Jazz/Fit subcompact for the European market, will be closed on Wednesday after working half the day on Tuesday.

A Dongfeng Honda car factory in Wuhan, central China, which gets some parts from the engine factory in Guangzhou, will operate as usual on Wednesday. It builds the CR-V sport utility vehicle and Civic sedan.

Production could stay disrupted beyond Wednesday depending on the availability of parts supply and extent of damage to the factories, a spokesman said. (Reporting by Chang-Ran Kim)

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