Supply Chain Council of European Union |

Spring Art suspends factory ops due to Covid-19 cases

KUALA LUMPUR (Bernama) — Johor-based furniture player Spring Art Holdings Bhd has confirmed that some of its employees have tested positive for COVID-19, resulting in the temporary suspension of operations at two factories.

The ready-to-assemble furniture products maker said it was working closely with the Health Ministry to implement mitigating steps to contain the spread of infections among its workforce.

“Following this, the operations of Spring Art’s factories A and B and its administrative office have been temporarily suspended and shall resume on Jan 20, 2021,” it said in a filing with Bursa Malaysia today.

The company noted that the temporary suspension of business would delay the shipment of several sales orders to its customers in the Middle East, North America and India; hence it was currently in discussions with the respective customers for the extension of time to deliver the goods.

“We believe that there will not be any adverse impact on the group in view of the long-term relationship with the respective customers.

“After the recommencement of business, the company is expected to be able to meet the demand of its customers via overtime and extra shifts,” it said.

The company added that the group had incurred an estimated cost of RM200,000 resulting from swab tests and disinfection works.

However, apart from the said cost and the overtime expenses to be incurred by the company, it does not expect any material impact on its financial performance.

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