POHUAT

1.480

(%)

OTHERS POH HUAT RESOURCES HOLDINGS BERHAD TEMPORARY HALT OPERATION IN VIETNAM OPERATIONS

POH HUAT RESOURCES HOLDINGS BERHAD

Type Announcement
Subject OTHERS
Description
POH HUAT RESOURCES HOLDINGS BERHAD  TEMPORARY HALT OPERATION IN VIETNAM OPERATIONS

The Board of Directors (“Board”) wishes to announcement that Poh Huat Furniture Industries Vietnam Joint Stock Company (”Poh Huat Vietnam”), the Company’s main operating subsidiary in Vietnam, has halted its production activities at its factories located in the Binh Duong Province on 17 July 2021 and subsequently in the Dong Nai Province on 20 July 2021 in compliance with Directives No. 16 issued by the Government of Vietnam on 16 July 2021 to close all non-essential businesses to contain the spread of the COVID-19 virus in 16 southern states of Vietnam.

 

Under Directive No. 16 which became effective 19 July 2021, only factories, businesses and service establishments producing and providing essential goods and services are allowed to open and asked to ensure workers follow strict health guidelines issued by Vietnam Health Authority.

Poh Huat Vietnam is implementing mitigation steps to contain the spread of COVID-19 at the premises, and safeguard the health its of employees who may have been exposed to the virus.

 

At present, no employee at the Binh Duong and Dong Nai production facilities has shown any symptom of Covid-19 infection. Poh Huat Vietnam will undertake screening and quarantine measures in the event any employee exhibits any Covid-19 symptoms or is confirmed Covid-19 positive.  

 

Impact on Operations

The production interruption at Poh Huat Vietnam’s production facilities in Binh Duong and Dong Nai Provinces are expected to result in delay the shipment of orders to its customers in the US. The management is currently in discussion with the affected customers for the rescheduling of the delivery dates for these orders and is assessing its impact on Poh Huat Vietnam and the Group.

 

Poh Huat Vietnam is able to mitigate the delay in some orders/shipment as it has certain amount of ready inventory to meet some of these orders and if necessary, increase production with extended shifts upon re-commencement of manufacturing activities.

 

Impact on financial performance

The Group is monitoring the Covid-19 development in Malaysian and Vietnam and assessing its impact on the operations and financial performance of the Group. The Company will make necessary announcement in the event of any material or adverse development relating to this matter.

 

This announcement is dated 21 July 2021.






Announcement Info

Company Name POH HUAT RESOURCES HOLDINGS BERHAD
Stock Name POHUAT
Date Announced 21 Jul 2021
Category General Announcement for PLC
Reference Number GA1-20072021-00001