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MPACT LIMITED - Force majeure declared in respect of interruption in electricity supply to the Springs Paper Mill
2020/09/16 08:08:00Download PDF Stock report
Force majeure declared in respect of interruption in electricity supply to the Springs Paper Mill
Mpact Limited
(Incorporated in the Republic of South Africa)
(Registration number 2004/025229/06)
JSE share code: MPT ISIN: ZAE000156501
('Mpact' or 'the Company' or 'the Group')
FORCE MAJEURE DECLARED IN RESPECT OF INTERRUPTION IN ELECTRICITY
SUPPLY TO THE SPRINGS PAPER MILL
As a consequence of an explosion and fire at the municipal sub-
station in Ekurhuleni, which supplies electricity to the Company’s
Springs Paper Mill (the Mill), the Mill has been without
electricity supply from 18:00 on Wednesday, 19 August 2020 to date
(Power Interruption) and has therefore been unable to produce.
The Company was initially advised by the Ekurhuleni Municipality
that electricity supply would be restored to the Mill by no later
than 7 September 2020. This has regrettably not happened. Based
on the latest indications from the Municipality, it is anticipated
that electricity supply could be restored to the Mill by the end
of this week. However, given the delays to date, and given the
unforeseen additional delays experienced by the Municipality in
restoring the sub-station, the Company has declared force majeure
in relation to the Power Interruption.
While the Power Interruption is an insurable event in terms of the
Company’s insurance policy, any impact on the Group’s earnings
remains uncertain.
About the Mill
The Mill, located in Springs, Ekurhuleni, produces coated white
top cartonboard used for packaging foodstuffs, and speciality core
board used for toilet rolls, paper reels, cling wrap rolls amongst
others. The Mill has a production capacity of approximately 140
000 tons per annum and its total revenue in 2019 was approximately
R1.3 billion.
Melrose Arch
16 September 2020
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 16-09-2020 08:08:00
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