KUALA LUMPUR: Furniture maker Latitude Tree Holdings Bhd said its factory operations in Kuala Trengganu has been temporarily suspended due to Covid-19 infection among its workers.
Meanwhile, operations at two of its factories in Vietnam were also halted for six days to comply with local Covid-19 regulations.
The company, in a filing with Bursa Malaysia today said it had discovered two positive Covid-19 cases at wholly owned Rhong Khen Timbers Sdn. Bhd in Kuala Trengganu (RKTSB).
"RKTSB received an official letter from the Ministry of Health on July 18 with instructions to temporarily suspend its operations from July 18 till July 24 July," Latitude Tree said.
"Subject to further directive from MOH, RKTSB is expected to resume operations in stages starting from July 25," it added. Meanwhile, two wholly owned subsidiaries in Vietnam have partially suspended their operation from July 19 to July 24 to comply with local regulations, Latitude Tree said.
Since July 16, businesses in Vietnam must implement "3 on the spot” (on-site production, on-site dining, on-site rest) approach to meet the safety requirements for workers inside the factory or company.
Latitude Tree said that both of its factories in Vietnam are implementing “3 on the spot” approach but with reduced production capacity starting from July 19.
"Estimated production output loss arising from the adoption of “3 on the spot” approach under Directive No. 16 is expected to be around 1.2% to 1.8% of the total estimated annual output volume for the financial year ending 2022," it added.