KUALA LUMPUR (Dec 20): Following a fire outbreak at its Senai manufacturing plant on Sunday (Dec 19), flexible packaging manufacturer Tomypak Holdings Bhd has given assurance that it has adequate insurance coverage to cover for the incident's damages.

In a bourse filing on Monday, Tomypak said its wholly-owned Tomypak Flexible Packaging Sdn Bhd (TFPSB) has adequate insurance coverage of up to RM271 million for property damage and stock in trade, and RM80 million for business interruption for up to two years.

The fire, which started at the factory's warehouse at about 12.30pm on Sunday, eventually spread to the entire manufacturing plant. The outbreak was only contained at about 7am on Monday.

"As the fire department's forensic team has just commenced its investigation and there are still concerns over smouldering remnant smoke and the possibility of falling structures, personnel are not allowed into the premises pending clearance from the fire department.

"Once we receive clearance to be able to gain access to premises, we will be in a better position to assess the situation more clearly.

"The company will be working closely with the insurance adjuster in this respect. Once we are able to gain access to the site, the company will be able to provide a more accurate assessment of the extent of damage and loss estimate," it said.

The group said it is working on a recovery plan to recommence operations as soon as possible and will make the necessary announcement at the appropriate time.

"The company will make further announcements whenever there are any new developments on the physical recovery as well as any significant financial impact from the insurance claim," it added.

The group's share price tumbled as much as 20 sen or 40% earlier to 30 sen apiece, before paring some losses to settle at 36 sen — still down 14 sen or 28% — for a market capitalisation of RM155 million.

It saw 10.2 million shares traded.