Fire damage at RK Resources estimated at $5.5 million

April 06, 2018 | 16:38

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Latitude Tree Holdings Berhad has just announced the estimated damage from the fire at RK Resources Co., Ltd., an indirect wholly-owned subsidiary of the company.

fire damage at rk resources estimated at 55 million

RK Resources' factory after the fire

The estimated loss of the fire is $5.5 million, $3 million of which was loss of inventories, $2 million of the building, and $0.5 million of machinery.

RK Resources is now assessing the operational and financial impact of this incident. The company has also commenced discussions with affected customers to reschedule shipments of finished goods and plans to increase production hours by additional overtime to replenish its stock of finished goods.

The fire occurred at a factory building belonging to RK Resources, which is located at RK Resources' manufacturing facility in Binh Duong province. The affected building housed the assembly and packing line as well as the inventories of unfinished and finished goods.

The fire started at 12.30 AM yesterday, April 4, and was put out at 7 AM. The damage was restricted to one old building. The other manufacturing facilities of RK Resources were not affected and production activities are running as normal.

The Binh Duong Firefighting Department and the insurance agency’s representatives are still conducting the investigation to ascertain the causes of the fire. All the assets were adequately covered by insurance and sufficient insurance coverage has been taken for consequential business loss.

RK Resources is now assessing the operational and financial impact of this incident. The company has also commenced discussions with affected customers to reschedule shipments of finished goods and plans to increase production hours by additional overtime to replenish its stock of finished goods.

Meanwhile, according to Nguyen Van Hoa, deputy director general of the Binh Duong Firefighting Department, the assets saved in the fire are estimated at VND120 billion ($5.3 million) in value.

By Huong Thu

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