OM Holdings has temporarily halted all production in Sarawak, Malaysia, and placed the plant under care and maintenance due to the detection of COVID-19 cases in its dormitories.
Production will be suspended for an undisclosed period of time and shipments of existing inventory are anticipated to face delays, the Malaysian company indicated, adding that it is developing action plans to resume operations. The lockdown could last a few weeks to a month.
OM Holdings produces raw material ferroalloys used in various steelmaking operations. The supply chain effect is yet unknown. The company’s production guidance for FY21 has been withdrawn and will be adjusted in the future.
Malaysia has announced a lockdown starting June 1 due to the risk of new infections. A partial lockdown was imposed until June 7 previously but new infections rose after the Eid festival.
All business activity will be shut down from June 1-14, except for essential services. Some economic segments will be allowed to reopen in the second four-week phase. By mid-late July all business would be allowed to operate but all social activities will remain limited in statute.