Magni-Tech says several garment-making facilities in Vietnam affected by Covid-19 lockdown

TheEdge Thu, Jul 22, 2021 07:25pm - 1 week ago View Original

KUALA LUMPUR (July 22): Magni-Tech Industries Bhd said today that "a few" of the group's garment production facilities in Vietnam have temporarily suspended operations from July 19, following a renewed lockdown in the country amid rising Covid-19 cases there.

In a filing today, Magni-Tech said the financial impact from the closures is still being assessed.

"The precise date for the facilities to resume operations has yet to be determined," it said.

Operationally, Magni-Tech said it is expecting delays in its shipments of orders to a customer overseas due to the closures.

"The group is mitigating the impact of the government measures by proactive and close engagement with the customer to manage the production capacity challenges and to have the delivery dates rescheduled in order to meet the demand of customer.

"The management is assessing the relevant impact on the operations of the group," it said.

Meanwhile, Magni-Tech also said it has been implementing mitigation steps to contain the spread of Covid-19 at the said facilities, and safeguard the health of the workers who may have been exposed to the coronavirus.

Magni-Tech manufacturers garment and plastic packaging products. While Vietnam houses some of its garment manufacturing facilities, it also has similar facilities in Malaysia while its packaging business also operates here.

Shares of Magni-Tech settled up two sen or 0.89% to close at RM2.26 today, valuing the group at RM980.73 million.

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