KUALA LUMPUR: Precision parts manufacturer Notion VTec Bhd has estimated an initial loss of RM150 million to RM200 million from the fire at its main plant in Klang on Friday.
Notion VTec also estimated that full restoration of structure and Certificate of Fitness following the fire incident may take up to a year.
In a filing to Bursa Malaysia this morning, Notion said the fire source, apparently from a ventilation fan, spread to all the main plant roofing behind the main office.
The fire affected more than 552 computer numeric control (CNC) machines and work-in-progress (WIP) goods and the quality control (QC) building but not the rear building and the surface treatment plants are good and operational.
The company said it had adequate insurance coverage namely RM350 million for property damage and RM217 million for business interruption for up to 18 months.
“Preliminary estimate of the loss is about RM150 million to RM200 million. Once we gain access to the site we shall be able to assess the extent of damage and provide a more accurate estimate of loss.
“The immediate effects of this outage in this affected plant is about 50-60 per cent of the company sales revenue but with the fast recovery plan, Notion will have restored 75 per cent of the outage progressively within five months and the balance within another three months.
“But of course the full restoration of structure and Certificate of Fitness may take up to a year,” it explained.
Notion VTec said the building structure will need to be removed and rebuilt including the air supply and electrical wiring and ancillary equipment.
It also announced that it was ordering and sourcing for emergency replacement CNCs and quality control equipment.