Bawan says SAR 33 mln insurance claim for Dammam factory fire settled

Logo of Bawan Co. 

Bawan Co. announced the completion of the insurance claim related to the fire incident at a factory of one of its subsidiaries, ARNON Plastic Industries Co., according to a bourse statement.

Bawan approved a settlement offer for the damaged assets and the halt of the company’s business activities at a total value of nearly SAR 33 million, of which SAR 9.6 million was previously received. 

This settlement will result in a capital gain of approximately SAR 5.5 million and a compensation of SAR 10 million against the business disruption.

The relevant financial impact will appear during Q4 2021.  

The net book value of the factory’s damaged assets amounted to SAR 17.5 million. 

However, Bawan expects no material negative impact from this incident on its financial results.  

Commercial operations are forecast to be launched at Dammam factory by Q2 2022, the statement added.  

In July, the company received a credit note, amounting to SAR 9.6 million, from the insurance company in connection to the fire incident at the factory of ARNON Plastic Industries, Argaam earlier reported. 

In February 2020, Bawan announced that a fire broke out at one of the factories of ARNON Plastic Industries in Dammam.