2,000 jobs may go in Lampang

Ceramics producers in Lampang province say they may be forced to lay off 2,000 workers due to a 20-per-cent drop in sales and the impact of rising production costs, particularly liquid petroleum gas (LPG).

The industry expects exports to contract by 20 per cent also, in line with the economic downturn in the US and European Union.

Athipoom Kamthornvarin, president of the Lampang Federation of Thai Industries, said yesterday the federation had requested from the Energy Minister a delay in adjusting the retail price of LPG - a key production cost in ceramic manufacturing.

Lampang is the country's biggest ceramic industry centre with 220 factories. They employ a total of 10,000 workers and record total sales of Bt2.5 billion per year, of whichBt1.8 billion goes for export. The industry's LPG consumption reaches 500 tonnes per month, accounting for 25 to 30 per cent of total production costs.

"If our fuel costs increase, we will suffer more," Athipoom said.

He pointed out that a govern-ment adjustment to LPG price of Bt6 per to Bt24 per kilogram would increase production costs by 8 per cent.

"About 5,000 manufacturers and workers will march to PTT's gas depot on November 29 to urge them to delay the price increase," said Athipoom.

So far, manufacturers are trying to manage costs by reducing the overtime of 10,000 workers. However, the attempt might not offset both rising costs and dropping sales, meaning employers would have to lay off some 2,000 labourers next year.

The National Energy Policy Committee announced on November 14 it would adjust LPG by Bt6 per kg. However, for the first three months it plans to increase the price by only Bt2 per kg, to help manufacturers.