KUALA LUMPUR (Oct 27): Lii Hen Industries Bhd said a fire occurred at the second premises of Favourite Design Sdn Bhd, a major wholly-owned subsidiary of the company in Kawasan Perindustrian Bukit Pasir, Muar, Johor, at 3.20pm today.

In a filing with Bursa Malaysia today, Lii Hen said the fire was brought under control at about 4.45pm. The premises is housed within eight blocks of single-storey furniture factory building, together with a three-storey office block.

"The financial impact of this incident is being assessed and the announcement will be made once it has been determined," it said.

"The incident has caused four out of eight blocks of production lines, the conveyor system, spraying and wood making machines as well as inventories (mainly of white parts) [to be] destroyed by the fire. The property, plant and equipment and inventories destroyed are adequately insured," it added.

Lii Hen said management of the company and Favourite Design will collaborate with insurers and contractors to ascertain the actual extent and quantum of the losses caused by the incident.

It added that the incident will have operational impact on bedroom sets operations of the group.

In the interim, Lii Hen said management will mitigate the impact of the incident by increasing production hours/shifts at the main premises located in Mukim Sungai Raya, Muar, to compensate for the loss in capacity.

Lii Hen shares closed 20 sen or 4.67% lower at RM4.08 today, with 3.74 million shares done, bringing a market capitalisation of RM734.4 million.