KAWAN

1.810

+0.01 (+0.6%)

OTHERS KAWAN FOOD BERHAD ("KAWAN" OR THE "COMPANY") - Temporary Suspension of Operations for Prevention of Spread due to COVID-19

KAWAN FOOD BERHAD

Type Announcement
Subject OTHERS
Description
KAWAN FOOD BERHAD ("KAWAN" OR THE "COMPANY")
- Temporary Suspension of Operations for Prevention of Spread due to COVID-19

The Board of Directors (“the Board”) of Kawan Food Berhad and its subsidiaries (“the Group”) wishes to announce that there were 78 Covid-19 positive cases confirmed on 11 June 2021 among the operations team of a wholly owned subsidiary namely Kawan Food Manufacturing Sdn Bhd (“Kawan Food Manufacturing”).

 

The Klang District Health Office and Malaysia of International Trade and Industry ("MITI") were immediately notified on the number of infected COVID-19 cases. Following Majlis Keselamatan Negara ("MKN")’s standard operating procedures (“SOPs”), the Kawan Food Manufacturing stopped its operations to perform deep sanitisation of the factory as well as hostels.

 

Kawan Food Manufacturing received an official letter from Ministry of Health ("MOH") on 14 June 2021 with instructions to suspend its operation from 14 June 2021 to 21 June 2021. The Group has adopted all possible and necessary standard operating procedures (“SOPs”) at its operations, premises as well as hostels which include social distancing measures, temperature checks, proper hygiene, Personal Protection Equipment usage, regular sanitisation, restricting visits by outsiders etc.

 

Subject to further directive from MOH, the factory is expected to resume operations in stages starting from 22 June 2021. The production facility in China remains unaffected and is fully operational.

 

Impact on operations

 

The temporary cessation of business is expected to result in delay of deliveries for several orders to its customers. The management is currently in discussion with the affected customers for the rescheduling of the delivery dates for those orders and expect that there will not be any adverse impact to the Group.

 

The Group expects to increase production with extended shifts upon re-commencement of manufacturing activities.

 

Impact on financial performance

 

The Group does not expect any material impact to its financial performance other than the cost incurred for the COVID-19 test and disinfection cost.

 

Barring any prolonged interruptions or closure of operation of the factory, the Board does not expect any material adverse impact on the revenue or the earnings of the Group for the financial year ending 2021 as the Kawan Food Manufacturing has sufficient finished goods and China factory as part of the Group’s business continuity plan for production output to fulfil customer orders.

 

The announcement is dated 14 June 2021.

 






Announcement Info

Company Name KAWAN FOOD BERHAD
Stock Name KAWAN
Date Announced 14 Jun 2021
Category General Announcement for PLC
Reference Number GA1-14062021-00107