KUALA LUMPUR – Kossan Rubber Industries Bhd is projecting an impact on earnings this year after hundreds of its workers tested positive for Covid-19.
The glovemaker told analysts yesterday that 427 workers were positive for the coronavirus, adding it screened its 7,004 workers from December 4 to 10.
“The company has transported the positive cases to hospitals as per the Health Ministry’s instruction. A thorough disinfection of all areas where the affected individuals have been present has also been carried out.
“For those under quarantine due to close contact, a second PCR test will be done on December 16 and 17, with the result to be known on December 18,” said the brief, as sighted by The Vibes.
Kossan plans “to test 20% of its workers every two weeks going forward” as all its Covid-19 positive employees are asymptomatic.
It is also expecting 1% of total annual out volume to be affected, citing mandatory self-isolation, which will in turn affect 25% of its capacity for the next two weeks.
“This works out to be around 0.96% of total annual output. Earnings impact is estimated to be around 2% of FY20 earnings.”
As for accommodation space at workers’ hostels, Kossan said they exceed International Labour Organisation (ILO) standards where the average space per worker is 46 per sq ft.
“This is above the requirement of 38.75 sq ft per worker set by ILO.”
The brief, however, does not state which factory was affected but analysts who attended the session said that only one out of the six factories was affected.
Kossan's headquarters is in Jalan Sg Putus, Klang, with the location being the same name of a cluster that, to date, has 434 cases.
The glovemaker’s share price opened 4.49% higher at 10.23am, giving it a market value of RM13.1 billion. – The Vibes, December 16, 2020
