KUALA LUMPUR (April 5): Latitude Tree Holdings Bhd's indirect wholly-owned subsidiary in Vietnam has suffered losses totalling US$5.5 million (RM21.45 million) in a fire this morning.
In a filing with Bursa Malaysia today, Latitude Tree said the fire occurred at a factory building belonging to RK Resources Co Ltd.
It said the affected building is located within RK Resources' manufacturing facilities in the Province of Binh Duong, Vietnam.
Latitude Tree said the affected building houses the assembly and packing line, and inventories of work-in-progress and finished goods.
It said the damage sustained from the fire is restricted to only one old building.
Other manufacturing facilities of RK Resources were not affected, and production activities are running as normal.
Latitude Tree said the fire department and insurance representatives are still conducting investigation to ascertain the cause of the fire.
It said all the assets are adequately covered by insurance, adding that sufficient insurance coverage has been taken for consequential business loss.
Latitude Tree said RK Resources is now assessing the operational and financial impact arising from this incident.
"RK Resources has also commenced discussion with affected customers to reschedule shipments of finished goods and plans to increase production hours by additional overtime to replenish destroyed finished goods," it said.
At the midday break today, Latitude Tree settled at RM3.40 with some 30,000 shares done.