CEO Morning Brief

Sern Kou Reports Fire Incident at Subsidiary’s Manufacturing Plant in Johor

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Publish date: Tue, 20 Dec 2022, 08:44 AM
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TheEdge CEO Morning Brief
Sern Kou reports fire incident at subsidiary’s manufacturing plant in Johor

KUALA LUMPUR (Dec 19): Furniture maker Sern Kou Resources Bhd reported a fire incident at one of the manufacturing plants of its wholly-owned subsidiary Sern Kou Furniture Industries Sdn Bhd (SKFI) in Muar, Johor.

The fire incident, which occurred last Friday (Dec 16), did not result in any fatalities, and none of the workers there were injured, the company told Bursa Malaysia on Sunday.

The fire broke out around 4pm at the affected plant — which consists of a single-storey furniture factory building — and the cause of the fire was still under investigation.

“The incident affected two spraying lines, inventory work-in-progress and finished goods. The damages sustained from the fire incident were restricted to one block of the furniture factory building mentioned above. Other manufacturing plants and production facilities were not affected, and production activities were running as normal,” said Sern Kou.

“The property, plant and equipment and inventories destroyed were adequately insured. SKFI will ascertain the actual extent and quantum of the losses caused by the incident in collaboration with insurers and other relevant parties.

“The management of the company will mitigate the production disruption arising from the incident by using spraying lines as well as increasing production hours in another manufacturing plant situated at Lot 11061, Mukim of Parit Bakar, District of Muar, Johor, which is located within the same district as the affected factory plant, to compensate for the loss in capacity,” the company explained.

In addition, the company said it is in discussions with affected customers to reschedule furniture shipments, and will make further announcements as new developments occur.

Sern Kou was last traded at 69 sen, with a market capitalisation of RM646.72 million.

Source: TheEdge - 20 Dec 2022

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