KUALA LUMPUR (June 8): Furniture maker Latitude Tree Holdings Bhd said today it has suspended the operations of two factories in Kapar, Selangor after 13 positive Covid-19 cases were detected among the factory workers.

In a bourse filing today, the group’s two wholly-owned subsidiaries, namely Latitude Tree Furniture Sdn Bhd and Rhong Khen Industries Sdn Bhd, suspended their operations from today until June 18. Meanwhile, the 13 workers who tested positive for the virus are currently undergoing treatment and quarantine.

Latitude Tree said it has adopted all possible and necessary standard operating procedures (SOPs) at its operations, premises as well as hostels, adding that disinfection exercises will continue to be conducted regularly.  

Subject to further directive from the Ministry of Health (MoH), both factories are expected to resume operations in stages starting from June 19.

“The temporary suspension of both factories is expected to result in delay for the shipment of several orders to its customers in the US and locally. The management is currently in discussion with the affected customers for the rescheduling of the delivery dates for these orders and expects that there will not be any adverse impact to the company.

“The company expects to increase production with extended shifts upon re-commencement of manufacturing activities,” said the group.

However, it said, other unaffected production facilities at different locations in Malaysia, Thailand and Vietnam remain fully operational.

Barring any prolonged interruptions or closure of operations of both factories, the board does not expect any material adverse impact on the revenue or the earnings of the group for the financial year ending 2021.

At market close, Latitude Tree shares were four sen or 2.19% lower at RM1.79, giving the group a market capitalisation of RM347.91 million.

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