Hwa Tai: Temporary suspension of Johor plant expected to cut production output

TheEdge Thu, Nov 11, 2021 09:00pm - 2 years View Original


KUALA LUMPUR (Nov 11): Biscuit manufacturer Hwa Tai Industries Bhd said it has received a notice from the Ministry of Health (MoH) to temporarily close its factory in Johor for 10 days —  from Nov 11 to Nov 20 —  to curb the spread of Covid-19 infections.

The factory is located at No 12, Jalan Jorak, Tongkang Pecah Industrial Area in Batu Pahat, according to the group’s filing with Bursa Malaysia.

The group emphasised that the temporary suspension of operations is expected to result in a reduction of production output at the said factory during the affected period, but that it is not in a position to quantify or determine the impact of the temporary suspension on its financial position.

Hwa Tai also noted the delivery of products from the factory for both domestic and international sales orders will be delayed.

“The company is working closely with the MOH in implementing mitigating steps to contain the spread of Covid-19 at the premise to ensure the safety and well-being of all its employees. The company expects to resume its operations after Nov 20, 2021, subject to further directive from MOH,” it added.

Hwa Tai’s shares settled two sen or 2.74% higher at 75 sen on Thursday (Nov 11), with some 2.29 million shares transacted. This gave the group a market value of RM56.12 million.

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