KUALA LUMPUR, Malaysia (July 5): OM Holdings Ltd, which debuted on Bursa Malaysia’s Main Market on June 22, announced that its smelting complex in Sarawak had been given permission to resume operations. Following a directive from the authorities, the plant was temporarily shut down on May 28. Given the constrained manpower environment and its focus on employee safety, the group said operations had recommenced initially with four furnaces within a phased plan to ramp up production in stages.
Because the plant was forced to shut down as part of movement control order 3.0 (MCO 3.0) on May 28, the group declared force majeure on all of its sales contracts and power purchase agreements until the plant can resume and achieve steady-state operations.
“The company was able to partially mitigate the impact on its supply chain during the temporary suspension by arranging for partial delivery of processed material to customers through third-party logistic service providers,” the company explained.
Multiple rounds of Covid-19 testing were carried out throughout June, according to the report. As of right now, 37 employees are still in quarantine.
Following the company’s active case management and testing, the Bintulu Division Disaster Management Committee allowed the plant to resume operations, according to the statement.
The four furnaces were turned back on last week, with employees who had tested negative for the virus in charge.
“Given the ongoing restrictions, such as the extension of the MCO for Sarawak and the safety and well-being of all employees following a prolonged quarantine period,” OM Holdings added, “it is expected that the plant will not be able to return to prior production levels in the short term.”
According to Sarawak’s vaccination schedule, 83 percent of the plant’s employees had received their first dose of the Covid-19 vaccine as of yesterday, and the vaccination drive is expected to be completed this month.
It has also been actively engaging with relevant government authorities to manage the immigration approval process for foreign skilled manpower and contractors wishing to work in Sarawak.
“These employees are needed to restart the four idle furnaces, install equipment for the furnace conversion project, conduct final performance testing of the sinter plant, and perform scheduled major maintenance, among other things. As mandated by the government, strict Covid-19 protocols will continue to be implemented for all employees “it was stated
At 2.56 p.m. today, OM Holdings’ shares were trading 13.5 percent higher, or 37 sen, at RM3.11, valuing the company at RM2.31 billion./n
