CCK books RM16mil fire bill

KUALA LUMPUR: CCK Consolidated Holdings Bhd acknowledged a significant one-off expense of approximately RM16 million due to a fire at its Indonesian subsidiary PT Adilmart in May. The inferno, which erupted at the Cikupa manufacturing facility in Tangerang on May 28, inflicted extensive damage, consuming around 85% of the production area. According to a recent filing with Bursa Malaysia, the fire was triggered by an electrical short circuit, as determined by the relevant authorities.

The RM16 million expense recognized for the quarter ending June 30, 2026, encompassed the write-offs of property, plant, and equipment, inventory write-offs, and other directly attributable costs. The insurance claim has yielded about RM3.4 million as of the Q2 FY26 interim report, but the final recovery remains subject to the insurer's assessment and has not yet been finalized.

Despite the devastating fire, CCK has taken proactive measures to minimize supply chain disruptions. The company has redirected production to its fully operational Pontianak manufacturing facility, which maintains full capacity to meet ongoing demand. Additionally, the upcoming Boyolali food processing facility, anticipated to commence operations in Q4 FY26, is poised to bolster production capacity and operational efficiency.

Its strategic location on the same island of Java, in close proximity to Cikupa, facilitates seamless transfer of production requirements and market expansion.