In addition, some of its stocks are kept at third-party warehouses. The fire was confined to the warehouse and the production facility was not affected by the fire.
The group’s priority at this juncture is to minimise disruption to its customers’ operations. Where existing stocks are available to meet customers’ orders, the group will continue its delivery.
Megachem’s group managing director Sidney Chew has estimated that about $10 million worth of chemical materials were damaged in the incident. Chew also expects that the building that the group has occupied sine 1994 would have to be “totally rebuilt”.
While Chew’s estimation is only preliminary, the group says that it will only be able to ascertain the full extent of the damage at a later stage after further investigation.
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The group will also be assessing the operational and financial impact to its FY2023 ending Dec 31 results. It will make the necessary announcements when there are material developments.
Shares in Megachemclosed at 48 cents on Jul 5.
