KUALA LUMPUR (April 30): Kossan Rubber Industries Bhd has clarified that the fire at a paint factory in Meru Industrial Park, Klang on Monday (April 29) had no impact on operations at its rubber glove factories.

“It is Kossan Paint, which has nothing to do with Kossan Rubber Industries Bhd,” its group managing director cum chief executive officer Tan Sri Lim Kuang Sia told The Edge, when contacted on Monday (April 29).

On Tuesday, Kossan Rubber Industries further explained in a filing that Kossan Paint is a related party of the company through Kossan Holdings (M) Sdn Bhd, which is a substantial shareholder of the listed rubber glove manufacturer.

It was reported that two buildings of Kossan Paint's paint processing plant were destroyed by the fire incident early Monday morning.

The cause of the incident and the total losses are still under investigation. No one was injured.

The fire, which was attended by 39 firefighters, was brought under control at 7.30am but the firemen were still putting out smouldering debris past 5pm, according to reports.

Kossan Paint's official website showed that it runs a state-of-the-art facility along Jalan Kapar, Klang, Selangor.

Spread over a production area of 24,000 sq m, the affected plant can produce an average of 12,000 tonnes per year of marine, industrial, decorative paints in full operation.

Meanwhile, Kossan Rubber Industries is the glove manufacturer founded by Kuang Sia and his four brothers, including the late Lim Kwan Hwa, who passed away during the Covid-19 pandemic in 2021.

Earnings-wise, the group’s net profit tumbled 98.03% to RM14.22 million or 0.56 sen per share for the financial year ended Dec 31, 2023 (FY2023) — the lowest since FY2006 — against RM157.1 million or 6.14 sen per share recorded for FY2022.

Its annual revenue for FY2023 shrank 32.34% to RM1.59 billion from RM2.34 billion a year earlier.

The lower annual earnings was due to one-off impairment loss and write-off of plant and machinery amounting to RM35.38 million and RM4.41 million respectively.

The weaker earnings was compounded by lower sales volume as well as average selling prices and higher natural gas.

Kossan’s share price closed up five sen or 2.33% to RM2.20, bringing the company a market capitalisation of RM5.63 billion.