Delay Of Euro4 Mogas Project
| Type | Announcement |
| Subject | OTHERS |
| Description |
Delay of Euro4 Mogas Project |
1. INTRODUCTION
The Board of Directors of Hengyuan Refining Company Berhad (“HRC” or “Company”) wishes to announce that the progress of the Company’s Euro4 Mogas Project (“Project”) is delayed and is currently expected to complete by Fourth Quarter of 2020.
There will be no impact to the Company’s operation and no supply disruption to the market.
From 1st January 2020 onwards until Project completion, the Company will continue to produce Euro4M specification product to customers and the shortfall caused by the Project delay will be imported.
2. DELAY DUE TO POOR QUALITY
The delay is due to quality issues related to pipe fittings supplied by the EPCC LSTK (Engineering, Procurement, Construction and Commission Lumpsum Turnkey) contractor discovered by the Company during a recent Project review. To ensure that the quality and safety standards of the Project are met, additional time is required for the contractor to procure and install the replacement fittings at their cost.
3. IMPACT TO THE COMPANY
The impact on the Company’s profitability is expected to be minimal.
This announcement is dated 29 November 2019.
Announcement Info
| Company Name | HENGYUAN REFINING COMPANY BERHAD |
| Stock Name | HENGYUAN |
| Date Announced | 29 Nov 2019 |
| Category | General Announcement for PLC |
| Reference Number | GA1-20112019-00069 |