OM Holdings’ Sarawak smelter resumes operations

KUALA LUMPUR: OM Holdings Ltd has resumed its operations which had been suspended since May 28 after several Covid-19 cases were reported at its smelter complex in Sarawak.

The company plans to ramp up its production in stages, given the constrained manpower environment and its focus on prioritising employee safety.

“As a result of the temporary suspension at the plant, the company had declared force majeure on all its sales contracts and its power purchase agreement until the plant is able to resume and achieve a steady state of operations,” it said in a filing with Bursa Malaysia today.

The company said during the temporary suspension, it had been able to partially mitigate the impact to its supply chain by arranging for partial delivery of processed materials to customers through third-party logistic service providers.

“Given the ongoing restrictions, such as the extension of the movement control order for Sarawak and taking into consideration the safety and wellbeing of all employees following a prolonged quarantine period, it is expected that the plant may not be able to return to prior production levels in the short term,” it added.

The company has also been actively engaging with relevant government authorities to manage the immigration approval processes for foreign skilled manpower and contractors to enter Sarawak.

“These personnel are essential for the plant, in order to restart the four idled furnaces, install equipment for the furnace conversion project, conduct final performance testing for the sinter plant and to carry out scheduled major maintenance, among others,” it added. – Bernama