Power Root instructed to temporarily halt operations in Johor factory to prevent Covid-19 spread

Power Root instructed to temporarily halt operations in Johor factory to prevent Covid-19 spread
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KUALA LUMPUR (Aug 5): Power Root Bhd said it has been instructed by the Ministry of Health to halt operations for six days from today at its plant in Johor to conduct sanitisation work to prevent the spread of Covid-19.

In a Bursa Malaysia filing, the beverage group said the factory in Taman Perindustrian Plentong, Masai is expected to resume its operations in stages on Aug 12, or earlier, subject to the approval of the relevant authorities.

Following the closure, the group will be conducting subsequent Covid-19 tests for workers and implementing quarantine measures for the affected workers and close contacts in the quarantine facility.

"The costs for Covid-19 tests, quarantine measures and disinfection processes will not have a material impact on the group's financial performance.

"However, it is expected to result in the deferment of shipment to its export customers.

"In the meantime, as the group would utilise outstanding stocks to fulfil sales orders, the group does not foresee any major disruption in the supply to the market," it said.

In July, Power Root also announced a temporary suspension of its operations at a similar factory located in Taman Perindustrian Plentong.

Shares in Power Root ended unchanged at RM1.30, valuing the group at RM556.42 million. Year to date, the stock has fallen by 33.67%.

S Kanagaraju