Bawan Ends Insurance Claim on Fire of Subsidiary Factory with Settlement of 33 Million

Bawan Company announced on Sunday that the existing insurance claim with the insurance company has been completed, as an offer made by them to settle the damaged assets and business interruption claim by SR 33.0 million approximately has been accepted. An amount of SR 9.6 million was received previously.

This comes in reference to the company’s announcement on Tadawul website dated 11/02/2020, regarding the fire incident of one of its subsidiaries’ factories (Arnon Plastic Industries Company), and its announcement of the recent developments related to it on 25-07- 2021, in which it announced that it had received a credit note from the insurance company amounting to SR 9.6 million, which represents part of the existing insurance claim with the insurance company.

The company said “This settlement will result in a capital gain of SR 5.5 million approximately against the damaged assets and compensation by SR 10.0 million approximately against the business disruption, the financial impact will appear during the fourth quarter of this year. The net book value of the factory damaged assets reached SR 17.5 million.”

The company does not expect that this incident will result in a material negative financial impact on the financial results. It also expects that the commercial production of the factory that caught fire in Dammam city will start during the second quarter of 2022.