Tomypak accepts Rm40mil insurance payout offer

PETALING JAYA: Tomypak Holdings Bhd has accepted an offer of a Rm40mil second interim insurance compensation payment from its lead insurer Berjaya Sompo Insurance Bhd, due to damages and losses from a fire outbreak at its Senai, Johor, manufacturing plant in December last year.

In a Bursa Malaysia filing yesterday, the group, a converter for flexible packaging materials in Malaysia, said the Rm40mil will be used by its wholly owned subsidiary, Tomypak Flexible Packaging Sdn Bhd (TFPSB).

It will be use to continue with a business recovery plan of sub-contracting orders received from customers, and also setting up state-of-the-art production capabilities at the existing Tampoi, Johor Baru plant.

To date, the first printing line and the first super combi dry laminator are at various stages of installation and commissioning at the Tampoi plant.

Also, the first extrusion laminator will be delivered to the Tampoi plant by end-september 2022 for installation and commissioning.

The remaining equipment ordered will be progressively delivered.

Major civil and structural, and mechanical and electrical works are ongoing to upgrade the Tampoi plant to accommodate the new equipment.

At end-march this year, the group had accepted an offer of the first interim insurance compensation payment of Rm75mil.

Tomypak had stated the new facility will transform TFPSB into an advanced, efficient and highly capable flexible packaging company.

“The state-of-the-art facility and embedded automation will also expedite the group’s journey into the Fourth Industrial Revolution smart manufacturing era,” said the group.

In December last year, the group said TFPSB has adequate insurance coverage of up to Rm271mil for property damage, and stock in trade and Rm80mil for business interruption up to two years.