Sern Kou Resources Bhd will cease plywood manufacturing operations at its 51%-owned subsidiary Sern Kou Plywood Sdn Bhd (SKPW) after the business continued to record losses with no reasonable expectation of improvement in the foreseeable future.
Then group said SKPW will progressively wind down its operations, including realising inventories, collecting receivables, settling liabilities and contractual commitments, handling property, plant and equipment, and addressing employee-related matters.
The cessation will affect 88 employees, comprising 14 local staff and 74 foreign workers. A small number may be retained for winding-down functions, while the remainder will be retrenched or transferred within the group where applicable.
Sern Kou estimated retrenchment costs at about RM200,000, subject to final computation.
The company said SKPW has been loss-making since the financial year ended 2024 and does not expect its financial performance to improve materially in the foreseeable future.
