China Stationery sees operation disruption after plant fire

by **Cals** Wed 09 Apr 2014, 01:52

Business & Markets 2014

Written by Bernama

Tuesday, 08 April 2014 16:09

KUALA LUMPUR (Apr 8): China Stationery Ltd expects disruption to certain operations of the group for at least two or three months following a fire at its production plant in Fujian Province, China.

In its filing to Bursa Malaysia, the company said the fire started at about 1.30am (China local time) on April 4.

It said it is taking urgent steps to start rehabilitation of the affected building and other measures to try to recover the installed capacity of the plant, adding it is working with its insurer to ascertain the extent of the damage.

An assessment of the financial impact caused by the fire is being carried out and the company would make a further announcement on the financial impact to the Group.

It said the loss of production capacity is conservatively estimated at more than 12,000 in tonnage.

The company added no injuries were reported and the fire department is still conducting investigations to ascertain the cause of the fire.

A site examination revealed that the fire gutted a section of Plant No. 4, measuring about 10,000 sq. m. out of the total floor area of 15,000 sq. m.

The affected area involves the production floor, materials, finished and semi-finished products kept within the production floor as well as the administration office.

There is substantial damage of goods, machinery and equipment that needs to be ascertained, and production capacity is seriously affected, the company said.