The Board of Directors (“Board”) of Texchem Resources Bhd. (“TRB”) refers to the announcement made by TRB on 17 October 2011 in relation to the production stoppage by Texchem-Pack (Thailand) Co., Ltd. (“TXPT”), a wholly owned subsidiary of Texchem-Pack (M) Bhd. which in turn is a wholly owned subsidiary of Texchem-Pack Holdings (S) Ltd., an approximately 70.48% owned subsidiary of TRB, due to severe flooding in Ayutthaya, Thailand.
The Board of TRB wishes to update that TXPT has made substantial progress in restoring its manufacturing facilities in Thailand. TXPT has been partially operational since January 2012, and expects restoration works to be fully completed by the end of the second quarter of 2012.
TXPT commenced the process for insurance claim in November 2011 and has since been awarded by the insurance company a total of RM19.8 million towards their claim for property damage and an initial compensation for business interruption caused by the flood.
TXPT is now awaiting final settlement of payment, and expects to commence claims for the loss of revenue opportunity arising from the flood in the third quarter of 2012.
This announcement is dated 27 February 2012.