?The proposed project, if materialised, could provide Tan Chong Motor with opportunity to expand its foothold in the automotive industry in Vietnam,? the company said in a filing with Bursa Malaysia last Friday
KUALA LUMPUR: Latitude Tree Holdings Bhd's major operating subsidiary in Vietnam sustained damages totalling US$5.5mil (RM21.45mil) due to a fire early Thursday.
The furniture maker said one factory belonging to its indirect unit RK Resources Co. Ltd in Binh Duong province was affected by a fire which started at 12.30am. It was put out at 7am.
The affected building houses the assembly and packing line, inventories of work-in-progress and finished goods.
Latitude Tree said RK Resources' other plants were not affected and production was running as normal.
It said the estimated loss caused by the fire was US$5.50mil of which US$3mil was due to loss on inventories, US$2mil on building and US$500,000 on machinery.
“The fire department and insurance representatives are still conducting investigation to ascertain the cause of the fire. All the assets are adequately covered by insurance. Sufficient insurance coverage has been taken for consequential business loss,” it said.
Latitude Tree said RK Resources was assessing the operational and financial impact from the fire.
“RK Resources has also commenced discussion with affected customers to reschedule shipments of finished goods and plans to increase production hours by additional overtime to replenish destroyed finished goods,” it said.
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