Tomypak's subsidiary adequately insured of up to RM351mil coverage

KUALA LUMPUR: Tomypak Holdings Bhd has reiterated that its wholly-owned subsidiary, Tomypak Flexible Packaging Sdn Bhd (TFPSB), has adequate insurance coverage of up to RM271 million for property damage and stock in trade and RM80 million for business interruption of up to 24 months.

In a filing with Bursa Malaysia today, the company said this is in reference to the fire outbreak at its Senai manufacturing plant in Johor Bahru which happened at approximately 12.30 pm on December 19 and was contained at approximately 7.00 am today.

The food packaging materials manufacturer said the Fire Department forensic team has just commenced their investigation and there are still concerns of smouldering remnant smoke and the possibility of falling structures.

It said personnel are not allowed into the premises, pending clearance from Fire Department.

"The insurer and adjuster team are ready to be on-site to assist in helping the company to recover in the quickest possible time. The company will be working closely with the insurance adjuster in this respect.

"Once we are able to gain access to the site, the company will be able to provide a more accurate assessment of the extent of damage and loss estimate,” it said.

Additionally, it said the company is working on a recovery plan to recommence operations soonest possible and would make the necessary announcement at the appropriate time.

"The company will make further announcements whenever there are any new developments on the physical recovery as well as any significant financial impact from the insurance claim,” it said.

Tomypak’s shares fell to 30 sen after dropping as much as 20 sen or 40 per cent today following the company’s announcement of a fire that broke of at its factory warehouse in Johor during the weekend.

The stock was suspended for one hour today from 9.00 am to 10.00 am and opened 19.5 sen or 39 per cent lower at 30.5 sen before paring losses to close 14.5 sen or 29 per cent lower at 35.5 sen at noon break.

It saw 7.15 million shares changing hands, 13 times its 200-day trading average volume of 549,777 shares. - Bernama
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