Cobra International Co. Ltd Announces Factory Lockout Effective December 4

Cobra International Co., Ltd. is a major manufacturer of surfboards, kiteboards, and wakeboards based in Chonburi, Thailand. It is also the leading manufacturer of windsurf equipment, with more than 50-percent market share.

On December 3, Cobra Int. sent out a letter to many of its partners in the surfboard market to alert them that due to failed negotiations with the Cobra Labor Union brought on by rising manufacturing costs, the 55,000 square-meter factory will be shut down for at least five days.

Due to the sheer volume of surfboards produced in Cobra’s factory this could have an unfortunate impact on many people in the global surf market. The letter says this will affect all shipments currently in place and urges vendors to contact their customer service representative about specific PO’s that should take top priority.

Here’s The Letter from Cobra International, Ltd.

The current political and world economic climate makes it is necessary for Cobra International to control rising manufacturing costs. After the failure of 5 weeks of negotiations between the two parties and after the Cobra Labour Union did not accept Cobra Internationals final offer the Union deemed the negotiations a failure.

The management regrets that the current situation could not be resolved thru mediation and hopes to resolve this situation as soon as possible.

To ensure the safety for the non Cobra Labour Union affiliated staff and to avoid any intentional damage to the companies plant the Cobra Management called for a Special Paid Holiday effective December 3, 2008, and have no other choice but to announce a lockout effective 8 am December 4, 2008.
Cobra International will welcome Employee's who wish to work back into the factory as early as Monday, December 8, 2008.

Unfortunately this issue will affect all shipment plans currently in place. As soon as physically possible we will supply you with a current finished goods list and revised production output plans.

Please inform your Customer Service person of any specific PO's in your shipment plan that should take first priority, so that we can work with you to lower the impact on your business.

After receiving your priorities and/or partial shipment instructions we will get back to you ASAP with revised shipment plans.

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