METAIR has initiated a business interruption claim to limit the impact on its automotive component vertical of an OEM customer that had suffered significant damage to its plant and had suspended its production from the floods in KwaZulu-Natal on April 1 and 2.
“Metair will also work with the affected OEM (original equipment manufacturer) to support their recovery and any recoupment of lost production. Metair is in close contact with funders to maintain sufficient short-term liquidity until the situation stabilises,” the group said in an update yesterday.
The impact of the floods on Metair’s own facilities and production was minimal and operations had promptly returned to normal, the group said.
There was no certainty yet on the timing of when production at the OEM would come back online, but Metair’s Automotive Components Vertical expected a material reduction in demand for its products until then.
Metair’s share price slipped 2.94 percent to R26.35 yesterday morning. - Edward West