KUALA LUMPUR (Jan 12): Spring Art Holdings Bhd said today it has suspended the operations of two factories as well as its administrative office, after some of its employees tested positive for Covid-19. However, it did not disclose how many have been infected.

In a bourse filing, the furniture maker said the employees tested positive for the virus yesterday, and that it is now working closely with the Ministry of Health to implement mitigating steps to contain the spread of Covid-19 at the premises, and to safeguard the health of employees who might have been exposed to the virus.

It expects operations at the affected premises to resume on Jan 20.

Meanwhile, the suspension will delay the shipments of several sales orders to customers in the Middle East, North America and India, said Spring Art.

Its management is now in talks with the respective customers for an extension of delivery time, it said, adding this should not have any adverse impact on its long-term relationship with these customers as it expects to be able to meet the backlog of orders once the suspension is lifted, via overtime and extra shifts by its workers.

Other than the cost of the swab tests and disinfection of its premises — which is expected to be about RM200,000 — together with an anticipated expense for overtime, it does not expect any material impact on its financial performance from the infections.

"There is no impact on the revenue of the group for the financial year ending 2021," it said, adding it will continue to adhere to the government's guidelines and standard operating procedures to minimise the impact of Covid-19 on its staff and business operations.

Shares in Spring Art finished 4.76% or 1.5 sen higher at 33 sen apiece today, giving it a market capitalisation of RM137.18 million.