Tuesday 8 April 2014

Fire in China Stationary plant

Announcement on Bursa Malaysia website:

The Company regrets to announce that a fire had occurred at the Company’s production plant located at No. 2899, Jin Jiang West Road, Hanjing District, Putian, Fujian Province, The People’s Republic of China (“PRC”).

The fire started at about 1.30 a.m. on 4 April 2014 (PRC’s time). No injuries had been reported. The fire department is still conducting investigation to ascertain the cause of the fire.

A site examination revealed that a section of the Plant No. 4 measuring approximately 10,000 square metres, out of the total floor area of 15,000 square metres was gutted by the fire. 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.

The production capacity is seriously affected. On a conservative estimate, the loss of production capacity is estimated more than 12,000 in tonnage. Hence, this will cause some disruption to certain operations of the Group for at least the next two or three months.

The Company is taking urgent steps to start rehabilitation of the affected building and other measures to try to recover the installed capacity of the plant.

The Company, with its insurer is working to ascertain the extent of the damage. An assessment on the financial impact caused by the fire is being carried out and the Company will make further announcement of the financial impact to the Group.

Luckily it sounds like there are no casualties.

But one important question seems to be: if the fire happened on April 4, 2014, why did the company only make an announcement on April 8, 2014?

Hopefully the administration is still in order, the administration office is mentioned as being damaged. In Singapore there was a China listed company where suddenly the whole administration went up in fire.

I wrote about China Stationary before.

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