KUALA LUMPUR (Jan 20): Timber harvester and product maker WTK Holdings Bhd (KL:WTK) said a fire broke out at its unit’s tape manufacturing factory in Perai, Penang, on Jan 17. 

The financial impact of the fire that occurred at its wholly owned Loytape Industries Sdn Bhd’s manufacturing plant last Friday is still being assessed, according to WTK in a bourse filing on Monday.

“The preliminary estimate of the impact on the earnings of the group is not expected to be substantial, and will also be mitigated by the adequate insurance on assets and consequential business losses,” it added.

WTK noted the fire incident did not result in any casualties, and the fire department is in the midst of conducting an investigation to ascertain the cause.

The group also said Loytape's management had initiated remedial actions to minimise operational disruptions due to the fire incident.

WTK is principally involved in the harvesting of timber and manufacturing of plywood and sawn timber, but also has business segments in oil palm plantation, tape manufacturing and frozen food distribution.

Its tape manufacturing segment operates under Loytape Industries.

“Based on the audited consolidated financial statements of WTK for the financial year ended Dec 31, 2023 (FY2023), the revenue registered by Loytape was RM27 million, equivalent to 4.8% of WTK’s consolidated revenue,” the group said.

In a separate filing, WTK announced its wholly owned unit WTK Capital Sdn Bhd’s lodging of an Islamic medium-term note programme of up to RM1 billion with the Securities Commission Malaysia.

The programme carries a 30-year tenure, with its first issuance to come within 90 business days of the lodging. Proceeds raised from issuances will be utilised for capital expenditure, refinancing, working capital and general corporate purposes.  

Shares in WTK ended half a sen or 1.08% lower at 46 sen on Monday, valuing the group at RM216.71 million.