KUALA LUMPUR (Dec 22): Car leather upholstery maker Pecca Group Bhd announced today 246 of its employees tested positive for Covid-19 in a recent screening.

The group also said swab tests, quarantine measures and disinfection processes are estimated to cost up to RM500,000. It added that the impact of the seven-day production closure is expected to be limited to less than 5% of the group's financial year 2021 (FY21) revenue.

In a bourse filing, Pecca said some of the production staff from its subsidiary Pecca Leather Sdn Bhd (PLSB) have been confirmed to be positive for Covid-19 after the company conducted a screening recently.

"In response, PLSB had conducted immediate screening of 597 employees as well as contact tracing and quarantine measures to mitigate the spread of Covid-19.

"Additionally, PLSB had enforced enhanced physical distancing and protection measures, arranged separate lodging arrangements for non-affected employees, and undertaken disinfection and sanitation activities at production areas and common spaces," it said.

To safeguard the safety of employees and facilities, PLSB also decided to close operations of the production floor from Dec 21 to Dec 27.

"As at Dec 21, 2020, all the swab test results received indicated 246 positive cases. The affected employees are receiving the necessary medical care, while close contacts are undergoing quarantine and will undergo subsequent testing. To date, no positive cases were noted among office-based employees," it said.

Pending further developments within this period and further consultations with the Ministry of Health, PLSB aims to resume production operations no later than Dec 28.

At noon break, Pecca shares fell nine sen or 5.92% to RM1.43, valuing the company at RM262.47 million.