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Nikon issued second notice on the damage from the flood in Thailand

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Nikon just published a second notice on the damage from the flood in Thailand (see first statement here) - they cannot provide any estimation on the potential damages because they still don't have access to the factory. There are no reported casualties from Nikon's employees. As expected, there will be products shortage. No word on any new product delays. The full text is included:

This is to advise you, following our first notice of October 11, of the latest situations of submersion at Nikon (Thailand) Co., Ltd., a consolidated manufacturing subsidiary of Nikon Corporation in the Rojana Industrial Park in Ayutthaya Province located in Central Thailand.

  1. DamagesThe 1st floor of all buildings at the premises are presently submerged and the water level is as high as around 2 meters and there arose no remarkable change since October 12. Operation of the factory has been suspended since October 6. It is reported that there is no human damage.
  2. Estimated impact to our business performanceWe still have difficulty to grasp the overall damages of our equipment and facility since access to the premises continues to be prohibited. We are now continuing our utmost to estimate the impact of the flood to our group companies and business performance. We assure you to immediately advise our findings once it is judged there will be an important change in our forecast.
  3. RecoveryWe are unable to define how soon operation will be resumed. It will take a certain time before the situation normalizes including completion of water pumping out from the Rojana Industrial Park. We have set up support system under the Emergency Headquarters for Disaster Control headed by the president and will endeavor to restart the operation as early as possible. Every possible measure is now under preparation to resume production by means as purchase of new manufacturing equipment, review of production assignment among whole Nikon group companies. As for drainage from the industrial park, we are requesting its acceleration to the Thai government, together with the Rojana Industrial Park authority, other companies in the Park and Japan External Trade Organization.

We deeply apologize you for any inconvenience caused by the disaster such as short supply of our products.

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  • Patrick

    This seems like much more info than was given after the tsunami. Why the transparancy?

    • Anon

      They must be mentally preparing us for the shortages, delays & price surge !

      • Not Surprised

        They need to build a factory in the United States. In one of our boring inner states where nothing ever happens. I would pay more to see a “Made in USA” label on some of their lenses.

        • step

          I would not want to pay more for a “made in USA” lens. Why would you want to build a factory in the middle of the us any way, it would result in a logistic nightmare.

          • James

            I suggest the UK or Europe. No real weather here of any severity. But of course since almost all the components and factories producing metals and similar are in Asia it makes sense to keep production there.

            • regular

              United Kingdom IS part of Europe.

            • fredflash

              Why not Croatia? A lot of unemployed workers – they would be glad to work hard. Several safe harbours like Pula, Rijeka, Split and others – so no problems for shipment via rail or ship. And Croatia is not known for earthquakes or tsunamis – so, Nikon you are welcome!

            • Prays to God and Bud

              well then, all the IT factories to be moving to UK or Europe or US? Why the US companies selected the factories in Thailand?

              California went through a large earthquake, and that Florida once got in the hurricane and the great flood…

              Please prays to God and Buddha, — for the Thailand people and in yourself.

            • Greg

              I suggest Greece. No one is working there, they are all picketing.

            • http://www.LouisRafael.com Louis Rafael Rosenth

              or just build somewhere in asia that’s ON A HILL and AWAY FROM TECTONIC PLATE BOUNDARIES – avoids floods, tsunamis and earthquakes.

          • Rich

            it would also result in thousands (conceivably) of new jobs for americans, and [possibly] an opportunity for employee discounts! :)

          • DFive

            Made in Afghanistan or Iraq perhaps !!

          • Don

            They produce there for one reason…lower cost. Well, from a business perspective this is just one of the many costs. Maybe one they didn’t count. I would think it would have at least been in their risk plan.

          • http://www.dungbeetle.com.au/ Scurvyhesh

            Considering a large portion of Nikon sales would be in the US, it wouldn’t. I have a company that does all my east coast logistics for me. They can get anywhere from Miami to Portland Maine in two days. Also if I need something sent back to our west coast facility I can have LTL or container loads doped on an IM train strait to Seattle. Usually 2-3 days. Hardly a logistical nightmare.

          • Jim

            logistic nightmare? This is the age of all kinds of air/highway/rail infrastructure – How do Nikon lenses make it from Thailand to the USA?

            • hcm.

              Nikon lenses make it from Thailand to the world, not USA. Logistic is not the problem. Labour, operating cost and employers attitude are the factors.

          • Vandyu

            Why must people be so negative about the U.S.? If Nikon signaled an interest in building or renovating a factory in this country, local and state governments would most likely swarm all over the idea. This nation has an excellent rail and interstate highway system, although needed updates do need to be made. Nonetheless, all of the negative talk doesn’t work for anyone’s benefit.

            • http://mike.heller.ca Mike

              No US citizen is going to work for the same rate as those in Thailand.

            • http://www.studiosolaris.com/blog Bogdan

              Well the cost of recovery from both disasters that hit Nikon this year will make up the difference many fold.
              I for one would pay a premium just to ensure people working those shops are well taken care off. Just I would expect to be treated and payed. Fairly.

        • goldaccess

          You mean in the middle of the Tornado Alley?

          And look at “Made in Germany” Leica how expensive your Nikon US gear might be then.

          • http://blog.nauphotos.com Nau

            Because even with all the tsunamis and natural disasters Asia is still cheaper… and thats freaking scary

          • http://www.studiosolaris.com/blog Bogdan

            You cannot compare the fabrication process and the scale of production. Besides, the M9 is a full frame pro rangefinder body. Neither Nikon nor Canon sell those FF bodies cheap.

            German labour cost is not the reason Leica is more expensive. Most german products have an up-market target and Leica is no different.

        • photdog

          Hey guys, lets be honest for a moment. Most of the Americans consider Honda and Toyota as more reliable as the American cars. Coincidence? And why would a Japanese company found a production in the US while US CEOs outsource anything they can to whether to Mexico or Asia?

          To chose a location for a new production has more components as anticipated safety from nature catastrophes as has happened in Japan and now Thailand. There is political stability of the countries, the costs of labor and not to forget the attitude of the employees towards work-quality as well as their efficiency to name some of the important factors. Furthermore the Japanese do have a mentality of their own and it is not easy for every personality to deal with them.
          Thus the most locations suggested here are not the ideal match…

          Just to tell from the posts in NR there is already a ranking in the production locations, which I would summarize as following:
          made in Japan #1
          made in Thailand # 2
          made in China # 5 (while #3 and #4 remain empty)

          Thus Thailand wasn’t a bad choice as far as the customer perception is concerned. And who would have guessed that this company got hit twice in just this year.
          If Nikon reconsider production in the Asia-Pacific region the probably were well counseled to go to West-Europe. They have a lot of quality-sensitive customers in this area, thus the additional costs in logistic during the production process could even out cause they wouldn’t have to ship the products to Europe then.

          Hey Nikon guys, you have a long tradition of building fine cameras and lenses. This incidents will certainly cost you a lot of money. But you can and you will make it up. We Nikonians are with you.

        • John

          Nikon puts all of their production in Asia where there are serious weather problems and wonders why they have production issues.

          Nikon all I can say is try putting a factory in Europe , the US or Canada and maybe you won’t have so many problems.

          You have a history of non transparency, expect loyalty from your customers…Sorry that’s a two way street. We sit here wondering whether the system we’ve invested so much money in will be an asset or liability. Just giving us some idea of your direction might help…

          You take much too much for granted.

          You aren’t the only game in town and it’s time you realize that.

        • Mike

          Where then? the dust bowl? Tornado Alley? Another state where another Andrew or Katrina might hit?

          I think South America, Southern Africa or India might be a safer bet.

  • Da

    Cuz it aint japan dude

  • Moth Flopwell

    BUT….only DX Cameras r made there…FX and upcoming D800 and D4 are produced in Japan….

    • Patrick hall

      Where are d300s cameras produced? I look forward to the d3s and d700 replacements but I also love the d300s. Will the d400 be pushed back because of this?

      • Bip

        D3S, D3X, and D700 are produced in Japan. D300S and below are produced in Thailand, the sub-merged Ayutthaya plant.

        • Adam

          Problem is, Nikon production got hit both sides this year! Early in Japan and now Thailand :(

        • rich

          lol…
          sounds like your saying ‘D300s the other soccer-mom ‘prosumer’ models are produced in thailand’

    • Bip

      Not 100% of the parts of those camera models are produced in Japan.

    • hc

      but FX lens like AFS 24-120mm, AFS 28-300mm were also produce from that plant.

    • logandiana

      Tired of waiting for announcements and the D300S replacement which now will probably be delayed until who knows when. I just pulled the trigger on a new D7000, grip, and 28-300mm from amazon. With the rebate it’s totally worth it and moving up from a D80 I think I’ll be happy. Then if they announce and release the D400 next week or next month or even early next year, I’ll just have to upgrade again then.

      • jg

        I did the same thing, only I replaced a D200. Thom Hogan had been forecasting the D300S replacement to be announced by February 2012. I figured I would hold out until then and decide between the D800 and D400.

        However, I pulled the trigger now on a D7000 because of the “confirmed” rumors of a $4k price tag for the D800 and the apparent total loss of the Rojana plant (according to the Nationmultimedia report Admin posted yesterday), which, no doubt, will result in inventory shortages, price increases and delay the D400 launch.

        Westoboro B.C.’s explanation for all the natural disasters over there would be worth a laugh if it wasn’t so sad and pathetic that people actually believe that drivel. Godspeed to the people of Thailand in recovering from this mess.

        • Richard

          You have something in the D7k which should serve you well, if you stay within its limitations, while all this sorts itself out.

          If the real D300S replacement actually comes out when Thom’s sources indicate you will still have a capable backup in the D7k. Right now I would not be at all surprised if most of Nikon’s DX products slip behind. I think that Nikon will make every conceivable effort to bring out the new FX offerings in time for the Olympics in order to respond to what, if early indications prove true in production examples, appears to be a very capable Canon offering.

          My biggest problem with the D7k is the limited buffer capability. A fast card and being aware of the situation help out though.

      • Wrong Lens

        28-300 is the wrong choice for D7000, but 18-200 is better tailored for DX, covering wide-to tele ! 28×1.5=42 is not so wide ! What’s the point of carrying an ultra-zoom if you don’t have wide angle? You must get a 10-24 or so as extra.

    • Vandyu

      While Japanese camera workmanship is now coveted by photographers, there is a major problem that none of the manufacturers can overcome. “Ten percent of the world’s active volcanoes are found in Japan, which lies in a zone of extreme crustal instability. They are formed by subduction of the Pacific Plate and the Philippine Sea Plate. As many as 1,500 earthquakes are recorded yearly, and magnitudes of four to six on the Richter scale are not uncommon. Minor tremors occur almost daily in one part of the country or another, causing slight shaking of buildings. Major earthquakes occur infrequently; the most famous in the twentieth century were: the Great Kantō earthquake of 1923, in which 130,000 people died; and the Great Hanshin earthquake of 17 January 1995, in which 6,434 people died. On March 11, 2011 a magnitude 9.0 Earthquake hit Japan, the country’s biggest ever and the fifth largest on record, according to US Geological Survey data.[20] Undersea earthquakes also expose the Japanese coastline to danger from tsunamis.” (Wikipedia).

      Thus, the Japanese people are, unfortunately, living atop a timebomb that they cannot dismantle. It would be in the best interest of the major corporations to diversify, as they are doing, in the locations of their plants, but moving from one area of instability to another doesn’t make a lot of sense.

      • John

        Well said Vandyu….I agree with every word you said…Why doesn’t Nikon see that.

  • Kurt Low

    Nikon needs to consult fengshui sifu for its base’s fengshui now.

    • GATT

      Those guys are interior design witch doctor con-men holding a giant wacky compass.

      • http://www.studiosolaris.com/blog Bogdan

        Yet they seem to have a bit more common sense than some Nikon executives…

    • silmasan

      or perhaps simply meditate and seek counsel directly from the Spirit…

  • FrenchFlies

    move to Bandung / Surabaya…

    • silmasan

      :D

  • Been there guy

    It sounded like FEMA could give Thailand some advise from their own failure. As long as the water level doesn’t recede, there is no way to do anything but waiting.
    Nikon has a full plate on their hand, the new product introduction will be the last thing on their mind right now.
    On the other hand, Nikonrumorers have one thing on our mind, the new D800. If we have anything to say in their board meeting, what would you order them to do?

    • http://www.studiosolaris.com/blog Bogdan

      I would advise keeping up with the worldwide demand of their current products to the best of their ability.

      There is a vocal minority who wants, sorry… DEMANDS new cameras.
      There is a silent majority who buys cameras. I would cater tho the needs of this majority for the time being.

  • Anon

    We know the 1st floor is submerged. I hope theye manufacture the entry-level DX cameras like D3100 there, but D800 parts are made / stored upstairs ;)

    Maybe a selfish sentence… Yet, how many natural / financial disasters does the D800 have to overcome before it’s unveiled?

    • Been there guy

      Their second floor has water too. The banana leaf roof doesn’t hold the heavy rain too well(:

    • Paul

      The D800 isn’t made in Thailand.

      • Cristian

        Until Nikon will present it, the D800 simply does not exist…

      • Rob

        How would you know this?

        • Victor Hassleblood

          Quite simple.The D800 isn’t made yet. Not in Thailand nor elsewhere.

  • Been there guy

    If Thailand is Nikon’s manufactory base, it sounded very likely so from the statements.
    Then, quite possibly, the Japan made D800 could be delayed too, some parts could be hold up there in Thailand.
    The Nikon lovers has one option left for your Christmas gifts–the Nikon 1.
    BTW, I have seen the Nikon 1 TV ad today for the first time.

    • richard

      sorry… the Nikon 1 is UGLY. I am afraid they got into that just to try to keep up with the panasonics and sony’s and others who are scrambling for that niche..

      fortunately the new canon d1-x is aimed at a totally different segment than those cameras produced in the Thailand Nikon plant, and so Nikon probably doesnt feel the sense of urgency that they normally would have if, say, canon had just released the replacement for the 70D or even the 5dMII.

      I think this financial setback will, however, convince Nikon that they need, now more than ever, to accelerate the D800 launch, in an effort to bring in much needed $$$.

      • JorPet

        To compete against the C@non, all they need to do is actually deliver a new camera before next March or April. C@non just pulled the old Microsoft move for FUD to try to scramble the market. There is never a point in announcing something that isn’t even being manufactured yet unless you are trying to stop people from fleeing your brand.

    • lorenzino

      Today I saw (again) the Nikon 1, in Akihabara. It really is as ugly as hell…

    • http://www.flickr.com/photos/anuwintschalek Anu W

      I saw the Nikon 1 (a white J1) in Wiener Neustadt, Austria. It IS exactly as ugly as on the photos! And large for what it is.
      Sad …

      • http://mike.heller.ca Mike

        I saw and tried both as well, didn’t think think they were large at all. Should be a good model for them.

    • BartyL

      I have never seen a camera that I would regard as “pretty”, just the same way I have never seen a spanner I though “looked good”. In both cases we are dealing with tools that are designed to do a specific thing and either do it well because they were designed well, or not. Those whining about the appearance of the Nikon 1 series are simply demonstrating that they value form over function.

      The 1 series is what it is. Snivelling about a Cessna because it isn’t an F18 misses the point. The idea of a compact camera with decent image quality that will work with my current lenses is great in principle. Where the whole deal falls down is the fact that here in Oz the prices exceed both that of the D3100 and the D5100. It’s almost as if they don’t actually want to sell any.

  • http://SiteofRojanaIndustrialPark Martin

    There’s confirmation, that water level is almost constant:
    http://www.rojana.com/home.php

    • Been there guy

      It must be the global warming! All that melted glacier water… They should listen to the nature and turn that industry park back to rice field, as it should have been!

      • silmasan

        http://asiapacific.anu.edu.au/newmandala/2011/10/19/thai-flood-cause-revealed-rain/

        A serious major re-planning is needed. I agree with one of the commenters there, they should really seek advice from Dutch urban planners immediately. Nikon can’t just get back in production in 6 months and hope it’s not going to repeat next year or the year after…

        • JorPet

          Well, staying there is an option and probably a good one. They do need to rethink the plant layout though. Either put it all on stilts (at 2 meters, this wouldn’t be hard). Or put their warehousing on the first floor and all assembly and equipment on the upper floors. Then if a flood is imminent, you move your warehoused goods to high ground (you won’t be needing them anyway until you reopen) and close things up when the water rises. When the water drops, you just go back in and continue from where your were.

          Flood zones, like any other zone just need proper planning and design and they are generally fine.

    • http://nikonrumors.com/ [NR] admin

      On that same page it says that you can get permission to enter the factory area:

      http://rojna.listedcompany.com/flood_situation.html

      Did Nikon missed that? In their statement they said they were not allowed to enter the facilities.

    • http://nikonrumors.com/ [NR] admin

      here is a direct link to the water level measurements at Rojana Industrial Park in Thailand:

      http://rojna.listedcompany.com/flood_situation.html

      currently between 2.6 and 2.87 meters

    • jg

      Wow. I just looked at those water levels and from 10/14 to today, it varied just .03 of a meter. That water is going no where anytime soon.

      Admin, I don’t think Nikon is allowed to enter the facility. If I understand the broken English correctly, the companies are allowed to post security guards at their facilities. However, the companies are responsible for providing boat transit and food and water.

      • http://nikonrumors.com/ [NR] admin

        I thought those are two different announcements “Permission to allow the safeguards operate for each factory” and “Permission to enter the factory area”

        • jg

          I took the second one as providing additional procedures to follow, but there is some overlap between the two posts, so you’re probably right.

      • Richard

        I don’t know about the translations, but your explanation seems plausible because of the risk of looting and industrial espionage which would be harmful to the various companies.

  • http://www.flickr.com/photos/subhrashis SGN

    Doesn’t the damaged Sony facilities include semiconductor productions?
    maybe that created problems in D800 sensor manufacturing pipeline….

  • Been there guy

    The nature flipped the birdie at human development.

  • D800

    “They still don’t have access to the factory.”

    Nikon must really hire a Zodiak boat & industrial divers to find out the content of the damage. Why the wait for the water to naturally recede?

    • Been there guy

      The divers might steal some D800 away! Can’t let that happen, can it?

      • Richard

        I would expect that Nikon have a pretty good idea of the situation and have probably already placed orders for replacement equipment.

        The questions to be answered involve the time line to have production restored at the existing location or a replacements facility. As yet unreported here is when electric service and so on can be restored at the plant which remains submerged. I would expect that the facility will need to be stripped sown to the structural base and have extensive treatment for mold and fungus which would not only constitute a health hazard for the workers, but a risk of contamination of lenses and other components being assembled which could lead to recalls that would be both expensive and damaging to the company’s reputation.

        Unless you have experience with flood damage it is difficult to imagine what a mess it is.

    • fred

      I’m sure Nikon has the desire and to do this, and their insurers even more so. Either the Thai government is keeping them out, or the hazards from standing water, human waste, industrial chemicals, etc., is too great.

      • Anonymous

        So, we may see some toxic s**t inside the D800 viewfinder ;)

        • Anonymous

          Along with the radioactive sensor & batteries…

          • silmasan

            That’s it. I’m switching to knitting!

  • Alan

    Nikon should build a factory in Italy, where the weather is always good lol.

    • Been there guy

      OMG, they would turn the camera into a high maintenance piece of art like Ferrari, instead of a reliable work horse. Besides, the mafia would steal the shipping truck right out the factory and selling them grey market for less! No, Italy is a bad idea.

    • lorenzino

      What about earthwakes? It’s not Japan, but they are still remarkable, especially in the south. And, huh, did I mention vulcanos? And btw, there is a flood going on in the north of the country, in these very days…

      • Alan

        Well, I live in the south of Italy and many of us doesn’t even know what is a earthquake lol
        Seriously, there was a big earthquake about 5 years ago that caused some problems, but only in old cities, where the houses where build before the WW II.
        And most importantly, here the weather is good: no typhoons, no floods.
        Well…the mafia is a problem, and Berlusconi too, but luckly there are few people like them :)

  • Been there guy

    Just saw some high ISO samples from Canon 1DX.

    http://dc.watch.impress.co.jp/docs/news/20111020_484856.html

    Can any diver out there smuggle some D800 for us to do a little high ISO comparison please? We are bored to death here at Nikonrumor.

    • JED

      Mmmmm. Love that high ISO banding… Good to see Canon are still on form.

      • Kurt Low

        Don’t worry, Nikon D4 will come out with ISO standing at Hi3 409600

    • silmasan

      Why are the samples so small…

      • JED

        Because they are not very good – the vertical line ‘banding’ is rather obvious.

        • silmasan

          That was rhetorical…

          • JED

            Fair enough. Hard to detect that on a forum sometimes ;)

  • http://istudio.isaacalonzo.com Makatron

    seriously nikon can’t catch a break this year!!

    • John

      They can’t catch a break because they are slow to react to everything. They make a good product but are unable to deliver it.. I’ve had it with Nikon. Tired of waiting. I picture these people sitting in Japan laughing at all the hype and speculation we can’t seem to control…

      You plan ahead and make most of your breaks, you don’t catch them.

  • Richard

    Most important is that people in Thailand can overcome this disaster and rebuild their lives. Any new camera announcement can wait. But that’s just me….

    • http://richardcromptonphotography.com RichM0nster

      I’m with you. Life is far more important than a few more megapixies or FPS. Lets hope they get back on their feet soon. Seems like in the UK all the talk is of one dead dictator rather than the plight of a nation…

      • http://www.robertash.com Robert Ash

        What a powerful point.

        Many thanks to you both for sharing those very insightful and very core perspectives. And on a separate note I’m very glad to see the thread here being so empathetic with the people of Thailand and showing respect and understanding for their plight over there. And for Nikon’s situation.

        Many thanks, everyone.

  • Schema

    My Patience has come to an end. You will find my whole Nikon stuff on eBay. Never Look back.

    • Gary

      That’s strange Schema – my existing kit doesn’t seem to have been affected by either the earthquake or the flooding.

      Let’s hope it holds out until the D800 I’ve been saving up for these past two years finally comes out :-)

      • silmasan

        I don’t know about you, but my primary reason to go Nikon is not the damned Dxxx stuff but the Nikkors and the F’in mount.

        • silmasan

          duh, sorry, that was for Schema.

          Can’t believe these little reply boxes…

    • http://richardcromptonphotography.com RichM0nster

      Yeah! F’in natural disasters, spoiling your excitement at a new photo toy. You change to something more reliable, like, well… er…. good luck with that one!
      I’ll stick to the system that works for me thanks. Nikon kit has never let me down yet and something totally out of normal business control isn’t going to put me off. I suppose you are pee’d off with them for building factories in areas that have potential risk of flooding/quakes/tsunami/killer bees/glacial thaw/wild fires/hurricanes/lightning strike/hail or a bit of fog stopping deliveries. Go out, use what you’ve got and have a nice time making images – end of rant, now breaaathe…

      • lorenzino

        Frankly, I am very surprised that someone still takes seriously these trolls (the “I am switching brand tomorrow” crowd). C’mon, I could make another account with a nice name (e.g. “nikonfan”) and then write “what! Last Nikon camera does not arrive to 1000000 ISO! I am selling all my 15+ lenses on ebay and investing in m43!” or smth like that…

    • Greg

      I’m sure someone will pick up your Coolpix from ebay

    • Anonymous

      Cool… some smart person is going to get a great deal. I did not realize that the current crop of Nikon equipment was not able to help brain dead photographers like you to make good photos.

  • Tonny

    D800 was being made in Thailand before flooding, that is definite.

    • Sahaja

      “…that is definite.”

      Source?

    • http://nikonrumors.com/ [NR] admin

      or maybe some major part of the D800

  • John Richardson

    maybe this has been said before, but, I can assume that Canon knew about this, knew that the facility would not be able to produce, so, in a smart marketing ploy to generate much excitement, went ahead and announced their product 6 months early. IF I knew my competition was destroyed almost beyond repair, I would do this.

    Adding to this, if Canon knew what Nikon had planned (you can’t tell me that industrial espionage isn’t alive and well), at is wasn’t as good as the Canon, the Canon announcement would have the Unwashed Nikon Crybaby Jumpers (we know who you are, you tell us all the time) standing in line. After Nikon is up and running, only the faithful would be left … ???

    • ha!

      you are probably right about the early annoucement.

      Knowing that so many people jump ships at the threat of not being able to upgrade their very reliable d3s in fear of being mocked when showing up to a sporting event.

      A dude.. two d3s.. and an amazing portfolio.. man you’re so last year. go get yourself a d4.. oh wait they haven’t released it yet.. haha sucker.

      Hey whatever. things happen. My d700 is still a workhorse. My lenses are still workhorses. I’m in no rush or need to upgrade to the greatest and latest

    • Anna Seed

      Quite the opposite I think. I reckon Canon thought Nikon was going to launch a new camera this month so did a pre-emptive launch of theirs to keep their customers loyal and now realise that’s not going to happen. Meanwhile, nobody is going to buy their old camera for the next months as they know a better one is coming and knw all the specs!

    • http://nikonrumors.com/ [NR] admin

      I doubt that – Nikon and Canon schedule together their upcoming press announcements. I think the initial plan was Canon announces this week, Nikon next week. Now it seems that Nikon has canceled their announcement for next week.

  • rhlpetrus

    This is not funny, people are not realizing how bad this is for Nikon.

  • http://galleries.gorji.com Gorji

    The poor folks who have been flooded need our prayers as they neither have a job or a home.

    • BartyL

      Food, shelter and pumping equipment would be a more practical contribution.

  • D40-owner

    I would gladly pay a 5-10% premium on my next Nikon purchase, if those % were directed to recovering the Thailand operation.
    Can you imagine what would happen if Nikon went into financial breakdown because of this? NO MORE NIKON!!!
    The same way I support my local football team, the same way I support my local park/gardens maintenance, I would support Nikon just to make sure I can keep shooting Nikon for years to come.

    Forget production, I’m sure most of us can delay our new body/lens purchase for a few months.
    We’ll have to wait and see what happens financially in the next couple of months, but be aware that this will be a hard blow…

    • silmasan

      I think you shouldn’t worry too much about it.

      Don’t forget about Nikon’s plants in Sendai and Tochigi. Pros who are using Nikon will still use Nikon because they are the most likely ones to have a roomful of Nikkor glasses (ok, a cabinetful). As long as there are younger generations learning from (and looking up to) these pros, the interest in Nikon stuff will be regenerated.

      And as long as Nikon keeps on supplying the best tools to the pros (and Nikon really needs this now, more so than ever), the consumer-class products which are ‘derived’ from the pro lineup will see a rebounce once they’re back on the market. Not less important are loyalty and sympathy from long-time users/fans of Nikon :)

    • Geoff

      You could always send a check to Nikon anytime you buy a Nikon product. Most of us would NOT want to pay the additional %’s

      • lorenzino

        I don’t want to pay any extra. If I had extra, I would help my father’s health situation….

    • John

      If you rely on equipment you can’t buy you’re in trouble. I need a product that will be there when mine breaks. I need to know that the company is forward thinking and is making business decisions consistent with the many variables there are in this business world.

      Nikon just isn’t that company anymore.

  • Sahaja

    …cannot provide any estimation on the potential damages because they still don’t have access to the factory. Actually it shouldn’t be that hard to figure out the potential damages to your equipment that has spent nearly three weeks under dirty water and is quite likely to be submerged for a few weeks more.

    Potentially the whole lot is pretty much a write-off.

  • Tonny

    http://nikon.com/news/2011/1017_03.htm

    ืNikon just donates 400K$ for the victims of this flood.

    God bless you.

    By the way Honda donates about 3.3 millions USD. God bless them too.

  • Sahaja

    “…cannot provide any estimation on the potential damages because they still don’t have access to the factory.” Actually it shouldn’t be that hard to figure out the potential damages to your equipment that has spent nearly three weeks under dirty water and is quite likely to be submerged for a few weeks more.

    Potentially the whole lot is pretty much a write-off.

  • broxibear

    Hi Peter/admin,
    Have you got any information about parts made at this factory that are shipped to other Nikon factories for assembly ?
    You’ve got far more contacts than I have, (and Thom Hogan posts here and he might know…where are you Thom lol ?). I can’t get any solid information about it but
    an educated guess, and from what I’ve read, suggests there are parts made in the Thailand factory for FX cameras and lenses.

    • http://nikonrumors.com/ [NR] admin

      No idea if any D800 related parts are made in Thailand. Some tips I received suggested that the D800 was completely produced in Thailand, but I guess we will never know until it is released.

      • broxibear

        I haven’t heard anything about the D800 being completely produced in Thailand. If that’s true you can kiss the D800 goodbye until Feb 2012 and possibly longer.
        I found an image of inside one of the flooded factories, it’s not the Nikon factory but it gives you an idea of the damage http://1.bp.blogspot.com/-8R0XgVHwS3E/Tp0Ho6gUvUI/AAAAAAAAA2M/tNFCN7I0Ubk/s640/image016.jpg
        In the case of Nikon we’re talking about dust free enviroments and sophisticated electronics machinery…even a little bit of moisture causes problems nevermind a 2 metre deep swimming pool that used to be the ground floor.

  • Ken Kockwell

    What next a Volcano eruption!
    Nikon need to get their house in order!
    There are always natural disasters, why does nikon choose to build factories there?
    Meanwhile Canon release the 1DX

    • Rob

      Announce != Release

    • KnightPhoto

      @Ken

      And everyone else who did not get this:

      Announce of the Canon 1D X does not = Release

      • Ken Kockwell

        Fanboys stop making excuses for Nikon’s crap marketing.

        There is one good thing Nikon is good at and that is making Excuses.

    • http://richardcromptonphotography.com RichM0nster

      Why is the huge economic might of California built along a fault line? Just because that’s where the workers, the raw materials and just about everything useful is!
      Civilisations have always thrived on the tectonic boundaries because the earth throws up more useful stuff at these junctions. (earthquake/volcano risk) We need water, so most cities are built on rivers (flood risk). We need to travel (before mechanised transport) so we built near the sea (flood/tsunami risk). Now stop being a Kock and go and do a bit of homework before making such stupid statements.

      • http://craigshipp.com Craig Shipp

        but in modern times many of the old rules are less relevant. we now have better roads, electrical grids, and communications that allows more choice regarding the location of factories. sure ship builders need to be near the water but cameras should be able to be manufactured anywhere.

        • Richmonster

          I wasn’t saying the infrastructure of civilisation is where it is due to rules, it just what it is. Yes you could conceivably build factories more or less anywhere, but they still get built in places convenient to manufacture. Who in their right mind would build a high tech area on a fault line? Silicon Valley is pretty much bang on for a shake up sooner or later. There are loads of places you could build a camera factory almost anywhere, but they get built in places convenient to the manufacturer. Natural disasters aren’t everyday things. It’s just bad luck how hard all these organisations have been hit

      • John

        It’s 2011 not 1911

  • http://ronscubadiver.wordpress.com Ron Scubadiver

    We don’t know because it is under water…

    How about we expect everything on the ground floor to be a total loss and it will take X months go get going again?

    Do they expect to go in and dry things out, press a button and bingo?

  • Rich in TX

    ok.. suggestions for next Nikon plant:

    Los Angeles, or anywhere along the san andreas fault.

    Thailand or Indonesia Coastal region.

    U.S. Gulf coastal region (new orleans, lower Alabama, etc)

    anywhere in Nebraska or Kansas.

    Any more bright ideas?

    • http://richardcromptonphotography.com RichM0nster

      How about in the UK. We could do with the manufacturing jobs in the relatively safe areas in the middle of our country. There are enough Japanese car plants here for them to know it would work OK. Sorry for the sensible answer – coastal Bangladesh might be a better fit with your post however. They sit at the end of some seriously flood prone rivers!

    • jg

      The underground bunker in Iran where Iran enriches uranium, allegedly.

    • Realist

      Why not in Germany, between 1933 and 1945 ?

      Cheap workers, no strike !

  • paf

    I don’t think companies would be willing to leave their facilities in this area and not relocate them to other locations. I don’t think Nikon (and others) will be waiting for the water to subside and for the clean up to take place — I bet they are working on an alternate location as we speak leaving this one as a write-off.

    • Rich in TX

      agreed.

    • D40-owner

      … except for the small detail of the skilled workers.
      Don’t forget Nikon has a few hundred workers in Thailand that need zero hours of training when the plant is back in line, or if they build a new one nearby.

      • paf

        my statement does not exclude nearby – other can be as little as few miles away leaving the work force mostly intact.

    • John

      Probably in another risky area in Asia. Hard to break old habits. Apparently they can’t think past the tip of their pencil.

  • happysnapper63

    Yep the timing of the Canons announcement (or is that premature specification ejacualtion ?) is clear and spot on. Canon have good news being published and Nikon only bad………… now the headline of the 1dx will help sell the low end canons in what is likely to be a market with a serious short fall of Nikon product. Some aggressive pricing moves on Canon’s lower end models and the glass to go with them………could be pretty devastating. Eventually flogging a few D4s and D800 will not keep the ship afloat.

    • One More Thought

      While the Canon 1dx is a great camera, I doubt if it will matter much tot hose who buy the lower end equipment. The people I know who have purchased lower end equipment do not even know about the 1dx, and I doubt would be impressed with its US$6800 price tag. If you told them about how great it was, they would say something like, well, it better be at that price, and would see no similarity between a $6800 cam and their model.

      The key for Nikon is to somehow maintain supply of the lower end stuff throughout the holiday season…

  • http://craigshipp.com Craig Shipp

    Why locate a factory in a flood area? And, why even consider re-opening at the same location?

    • One More Thought

      Flood areas are new waterways, but definition. Waterways make for convenient shipping. It’s two sides of the same coin…

      • One More Thought

        Correx to above:
        Flood areas are *near* waterways, but definition.

        • One More Thought

          I cannot type this morning…
          Flood areas are near waterways, *by* definition…

  • D700guy

    Nikon really needs to announce that D800 next week.
    It’s unfortunate that they have endured two catastrophes,
    but it’s beginning to feel like the FX shooters are the only ones affected by
    all their troubles. I think I can speak for most of us when I say that we feel
    like we have been punished long enough, we, as consumers need some hope too.

  • The invisible man

    By the time the D800 will hit the shelves, the D900 will be announced !

  • http://www.TheJordanCollective.com CaryTheLabelGuy

    According to my source, this will severely effect the D7000 and other “popular DSLRs”. Nikon will have severe product shortages in the coming weeks. Mostly DX products, but also other products as well. A lot of things were made in that Thai factory. These are all the details I could get.

  • Richard

    There has been a lot of talk about relocating production to a variety of locations, but the fact of the matter is that currency exchange rates have more to do with product pricing and margins than many people are taking into consideration.

    For example, this past Friday the Dollar was bouncing around record lows against the Yen, in the neighborhood of 76 Yen to the Dollar. Anyone who has been following pricing of Nikon (and other camera gear) the last few years should have noticed that the price has gone up dramatically in large part because of the decline in the value of the Dollar with respect to the Yen. Without digging into the actual numbers, IIRC the price increases are roughly 20-25%, perhaps more, but that is enough that the point should be clear about the problems involved.

    If Nikon were to open facilities in the U.S. to produce products for sale in North America I believe they would be in a competitive position compared to other camera manufacturers who are not so positioned.

    The problem is that the camera manufacturers appear not to be prepared to learn the lesson that the auto manufacturers learned a long time ago.

    See this article on the Dollar/Yen exchange rate.

    http://www.reuters.com/article/2011/10/21/markets-forex-idUSN1E79K0I320111021

    • Steve Starr

      Not necessarily true on the Yen vs. the dollar argument.

      More of the price revolves around what the country’s importer feels they can get, hence the gray importers selling for less than the country’s importer’s willing to sell for even with a Yen-to-Dollar currency exchange rate too.

      • Richard

        I am not at all sure how you can simply ignore a 25% or more currency fluctuation’s impact upon either pricing or margins or both.

        Yes, the “gray market” exists, but you will also recall that “gray market” products frequently have no warranty at all, not even a world or international warranty because they were purchased in an area not authorized for sale…and then there is the matter of what language the menus are in.

        • maybe

          i’ve always wondered about that gray market.

          is it stolen product? excess product that slaves over make to make extra money for themselves??

          because you say this. “because they were purchased in an area not authorized for sale” so how did they get their in the first place?

          • Richard

            Typically, a “gray market” product is legally purchased somewhere (outside of the U.S.) and brought into the U.S. by someone other than the authorized (by the product manufacturer) U.S. importer and offered for sale at a price which may be close to the MSRP of the authorized import or sometimes less.

            The problem for the purchaser is that the authorized U.S. importer will not service the “gray market” product much less honor a warranty. Some products have a “world warranty” and you get to ship it off to some place outside the U.S. Some manufacturer’s “world warranty” is not valid if the product was purchased in an area that it was not authorized to be sold.

            For example, if you are in Tokyo on business or holiday and make a purchase of a product and then have a problem with it you will normally have to send it to where ever it is that a product sold in Japan would be sent for service.

            There is also the matter of language. I neither read nor speak Japanese and so a user manual and/or menus in a language I do know can be a complicating factor. Have you ever read an owner’s manual for a German or Japanese car (even though it was in English) from a number of years ago?

            Sometimes a “gray market” product is brought in because of exchange rate considerations or the markup that the official importer makes or even occasionally because of a shortage of the official import, but it is always a “buyer beware” situation.

  • jg

    More about the human cost of the flooding from ABC news…

    The U.N.’s Food and Agriculture Organization said flooded areas of the country cover 12.5 percent of the total land under cropping.

    “Although no precise crop damage estimates are yet available, the main rice season at the critical growth stage is likely to be affected the most,” said an FAO statement.

    Thailand is a major agricultural exporter and has been the world’s top rice exporter for decades. The FAO said it expected its estimate to rise as dams allow run-off of water.

    Thailand’s Labor Ministry said the flooding has affected 14,818 workplaces and 678,227 workers. The total includes the damage from five major industrial estates north of Bangkok forced to shut operations in the past few weeks after being inundated.

    Their major food crop is in ruins and nearly three quarters of a million people are out of work. That is 1.5% of their work age population. Kinda puts worrying about a new DSLR launch in perspective.

  • waterworld

    Nikon should open up a waterpark. with lots of water slides and shaky fun houses.

    • iceworld

      not so funny !

      • waterworld

        I know.. But I’m still the type to laugh at my own jokes. :)

  • http://www.bernardovaghi.com.br Bernardo Vaghi

    Nikon, may The Force be with you.

    I know you make some wrong choices, just watching your profit not the placement of your industries in Thailand and Japan. You choose poor locations, with poor people just to explore and grown your profit. Ok, it´s the capitalism.
    Many user now are thinking switch Canon for some mistakes of your (Nikon) marketing and development team. But also you have loyal customers like me, who believes that an error could be a nice opportunity to an upgrade.

    You will have my money, since i have what i (and many) want: D800 with high sensivity, low noise, 60 fps video and AN OPTION OF M-RAW AND S-RAW FILES OK?

    Best vibrations!

    Bernardo

    • John

      I agree Bernard, but the people at Nikon have arrogance down to an art form. They assume we will be here. Wrong assumption…

  • Greg2

    Greg, people in Greece are picketing for a reason. Statistics show they work the most in the EU for the least wages. Get your facts straight :P
    That said, hell yeah open Nikon factories in Greece. The Crossroads to Europe/Asia/Africa!

  • mshi

    In Asian cultures, water means fortune because water is essential to rice production. Hopefully Nikon will make loads of money later this year.

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