ADDENDUM ANNOUNCEMENT FROM METHANOL CHEMICALS COMPANY RELATED TO THE LIMITED FIRE INCIDENT IN ITS PARAFORMALDEHYDE UNIT
Monday, December 29, 2014 at 12:00 AM
2014-12-29 (1436-03-07 ) 15:59:21
Further to the announcement published on Tadawul website on 16 Shawwal 1435 A. H corresponding to 16 August 2014 related to the restoration and resumption of operation of the Paraformaldehyde Unit by the end of the financial year 2014, the Company would like to announce that the shutdown of the Unit will continue due to the incompletion of the required restoration works which are being carried out in accordance with the highest environmental, safety and security standards. However, during the ongoing restoration works, a need has arisen to make some further technical modifications which were not considered during the preliminary technical evaluations, taking into consideration that the earlier announcement was based on those evaluations. Hence, the Company expects the completion of the restoration works and resumption of production by the end of Q1 of the financial year 2015. Accordingly, the expected financial impact of the shutdown of the Unit during Q1 of 2015 shall amount to approximately SAR 2 million which will be reflected in the financial results of Q1 of 2015. Concerning the insurance coverage, the Company is still negotiating with the insurance company to cover the losses occurred from the fire incident under the insurance policy of its plants. Further substantial details, if any, will be announced in due course.
It is worth mentioning that the annual production capacity of the Paraformaldehyde Unit is 8,250 metric tons out of the total production capacity of the Company plants which is 912,040 metric tons.