KUALA LUMPUR (July 19): Furniture maker Latitude Tree Holdings Bhd said it has temporarily halted operations at its manufacturing facilities in Malaysia and Vietnam due to Covid-19. 

In a Bursa Malaysia filing, the group said two of its wholly-owned Vietnamese subsidiaries Latitude Tree Vietnam Joint Stock Company and RK Resources Co Ltd are partially suspending their operations from July 19 to 24.

This is to comply with a Vietnam government directive to contain the outbreak of the virus in 16 southern states.  

Under the directive, only factories, businesses and service establishments providing essential goods and services are allowed to open. 

Following the temporary closure, Latitude said the estimated production output loss is expected to be 1.2% to 1.8% of total estimated annual output volume for the financial year ending 2022. 

The move, it added, is expected to have an adverse impact of around 1.5% to 2.0% on its revenue for the year. 

In a separate bourse filing, Latitude announced the temporary closure of its wholly-owned subsidiary Rhong Khen Timbers Sdn Bhd (RKTSB) in Kuala Terengganu, after it had discovered two positive cases of Covid-19 among its factory workers. 

 RKTSB is suspending its operation for six days from July 18 to 24. 

“The move is expected to have minimal impact on the company, as RKTSB supplies mainly to its fellow subsidiary, Latitude said. 

Shares in Latitude closed four sen or 2.48% higher at RM1.65 today, valuing the group at RM320.70 million. The stock has fallen 13.16% since the beginning of the year.