KUALA LUMPUR: Precision parts manufacturer Notion VTEC Bhd
's estimates the Friday fire at its main plant in Klang caused damage of between RM150mil to RM200mil.
It announced to Bursa Malaysia on Monday the fire source, apparently from a ventilation fan, spread to all the main plant roofing behind the main office.
The company said the fire affected more than 552 computer numeric control (CNC) machines and work-in-progress (WIP) goods and the quality control (QC) building but not the rear building and the surface treatment plants are good and operational.
“Notion has adequate insurance coverage - RM350mil for property damage, RM217mil for business interruption up to 18 months.
“Preliminary estimate of the loss is about RM150mil to RM200mil. Once we gain access to the site we shall be able to assess the extent of damage and provide a more accurate estimate of loss,” it said.
“The immediate effects of this outage in this affected plant is about 50 to 60% of the company sales revenue but with the fast recovery plan, Notion will have restored 75% of the outage progressively within five months and the balance within another three months.
“But of course the full restoration of structure and Certificate of Fitness may take up to a year,” it said.
Notion VTec said the building structure will need to be removed and rebuilt including the air supply and electrical wiring and ancillary equipment.
It also announced that it was ordering and sourcing for emergency replacement CNCs and quality control equipment.
Notion VTec estimated the affected segments are the camera, hard disk drive top clamps and automotive parts but the company will recommence production in Factory 3.
“Notion has adequate financial resources to quickly make even cash payments to secure any equipment or CNC or materials.
“Meanwhile, Notion has laid out a fast recovery plan to execute in order that the customers’ orders are fulfilled and their concerns allayed," it said.
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