Industry, Logistics & Shipping

Saudi glass maker Zoujaj's fire-hit production line back in operation

RIYADH
Saudi glass maker Zoujaj's fire-hit production line back in operation

Saudi Arabia's National Company for Glass Industries (Zoujaj) has announced that it has resumed operations at a production line that was damaged by a fire last year, while raising its estimate of repair costs and business interruption losses.

The company said the production line had been repaired and returned to operation following a shutdown that lasted from last September to July this year, said National Company for Glass Industries in its filing to Saudi bourse Tadawul.

The Saudi industrial group said the damage to the forming machine and glass feeder channel was more extensive than initially assessed, while delays in receiving specialised spare parts from original equipment manufacturers and the arrival of technical support teams prolonged the repair period.

The company revised its estimated repair and material damage costs to about SAR3.1 million ($826,000) from an initial estimate of SAR1.3 million, while business interruption losses increased to approximately SAR13 million from SAR2.9 million, it stated.

This increase was due to the actual extent of the damage to the forming machine and forehearth being greater than initially assessed, as well as the need to import specialised spare parts and provide technical support, which extended the repair period and resulted in a prolonged production shutdown for nearly a year, stated the Saudi group in its filing.

On the financial impact, Zoujaj said prolonged shutdown reduced profits by SAR16.1 million over the period from September 2025 to July 2026.

Both the material damage and business interruption losses are covered under its insurance policy and that it has initiated the claims process with its insurer, it added.-TradeArabia News Service