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June 24, 2021

Thai Union closes factory amid Covid cases

The seafood giant admitted the seven-day shutdown will affect its pet-food business.

Thai Union Group has closed a domestic factory after staff at the site in the south of the country tested positive for Covid-19.

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The international seafood processor did not specify how many employees at the Songkhla Canning Corporation (SCC) had been infected. It said it had closed the factory “out of an abundance of caution”.

The factory, which stopped operations on Sunday (20 June), is slated to be shut until the end of Saturday.

“While some SCC employees have recently tested positive, the company has comprehensive protocols in place for those who test positive, including taking care of the affected employees while isolating them according to government guidelines, identifying and testing close contacts and deep cleaning of visited work areas,” the group said in a statement. “Thai Union has full confidence in the extremely strict safety and health policies in place at all its facilities to protect against any contamination, including contamination from virus and infection.”

Asked how the closure would affect output, Thai Union told Just Food: “Thai Union expects marginal impact to its seafood operations as a result of the brief closure as other manufacturing operations will help compensate for any potential shortfall. However, we are expecting lower capacity, shipment and order delays from the pet food business starting later this month and extending through August 2021.”

According to Johns Hopkins University data, Thailand has recorded 228,539 cases of Covid-19 and 1,744 deaths.

Last August, Thai Union closed a factory in Pakpanung in Nakorn Si Thammarat, a city in southern Thailand, due to Covid-19.

Four months earlier, the company shut a site in Ghana after a staff member tested positive.

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What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
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  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
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  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
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