KUALA LUMPUR (May 3): SHH Resources Holdings Bhd said today its wholly-owned subsidiaries SHH Furniture Industries Sdn Bhd (SFI) and Kurnia Sejati Sdn Bhd (KS) have shut their manufacturing facilities located in Kawasan Perindustrian Pagoh in Muar, until May 14, after some employees tested positive for Covid-19.

This is the second shutdown that its unit SFI has had in less than three weeks. On April 27, the group announced that SFI had implemented a seven-day stoppage at its manufacturing facilities, from April 27 to May 3, as an employee tested positive for Covid-19.

"The temporary suspension of operations of the above subsidiaries are expected to result in delay of shipment of several orders to its customers. The management is currently in discussion with the affected customers for the rescheduling of the delivery dates for these orders," said the furniture maker in a filing with Bursa Malaysia.

Barring prolonged suspension of operations of the affected subsidiaries, SHH intends upon recommencement of operations to increase production activities with extended shifts to mitigate the delay in shipments.

Nonetheless, the company does not expect any material impact on its financial performance other than the costs associated with the swab tests, disinfection processes, daily meal allowances to workers and the costs of implementing extended shifts to fulfil delayed orders.

For mitigation measures, all the production employees of SFI and KS are currently placed under quarantine until May 14, with guidance from the Ministry of Health (MoH).

SHH said it is cooperating and working closely with MoH to implement the mitigating steps to contain the spread of Covid-19 at these factories, and to safeguard the health of the company's employees who might have been exposed to the virus.

SHH's share price fell three sen or 2.1% to RM1.40, bringing it a market capitalisation of RM70 million.