KUALA LUMPUR (Jan 17): Upholstery furniture manufacturer Homeritz Corp Bhd (KL:HOMERIZ) said on Friday that the fire at one of its production facilities in Muar, Johor, has been confirmed to result in an estimated loss of RM3 million, and will be recognised in the company’s financial results for the quarter ending Feb 28, 2025 (2QFY2025).

In a filing with Bursa Malaysia, Homeritz confirmed that the fire, which occurred last month, was caused by a spark from a switch at the duct conveyor spray booth. The affected facility, owned by its wholly owned subsidiary Embrace Industries Sdn Bhd (EISB), had been repurposed as a temporary spraying line in 2024 after previously being used for storage.

"None of the workers were injured and no casualties resulted from the incident," it said.   

The company disclosed that the affected assets were not covered by insurance at the time of the incident, as the fire insurance policy had expired on Oct 12, 2024. It said the renewal process was delayed due to the change in the factory’s operational purpose, which required additional assessment by the insurance company.

While the fire was confined to one block of the facility, Homeritz had previously said that disruptions are mitigated by redirecting production to another spraying line in the same district. Production activities at its other facilities remain unaffected.

Shares in Homeritz closed unchanged at 59 sen on Friday, with a market capitalisation of RM273.31 million. 
 
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