Micro-Mechanics shuts Suzhou factory amid virus outbreak

MICRO-MECHANICS (Holdings) on Wednesday said its factory in Suzhou, China will be temporarily closed, and is expected to resume operations on Feb 10, following the latest directives from the local Chinese authority in response to the Wuhan virus outbreak. 

The mainboard-listed group designs and manufactures precision tools for the semiconductor industry. Its Suzhou factory serves only customers in China.

Nonetheless, the closure is "not expected to affect the group's customers in other markets as they will continue to be served by its manufacturing operations in Singapore, Malaysia, the Philippines and the US," the company said in a bourse filling. 

For the first quarter ended Sept 30, 2019, sales derived from customers in China amounted to S$4.7 million, representing 30 per cent, or almost one-third of the group's revenue. 

Micro-Mechanics added that it is monitoring the situation closely and will keep shareholders informed of any material developments. 

The counter closed flat at S$1.83 on Wednesday.

The death rate from the Wuhan virus is currently about 2 per cent compared to around 10 per cent during the 2003 Sars epidemic, though the virus has sickened more people than Sars.

Studies on how quickly it spreads remain inconclusive, with a commonly used measure - known as the basic reproduction number - being difficult to calculate.

The virus was first reported as a string of pneumonia-like cases in Wuhan in December, before the World Health Organization identified it in early January as a new strain of coronavirus.

It has since spread to markets including Singapore, Malaysia, Taiwan, France, South Korea and Canada.