On July 5, Singapore halted the United Food Holdings' soya bean productions. According to their statement filed at the Singapore Exchange on last Friday, "pending a review of the business operating environment and its financial position."
The halted production affected 90 percent of the employees. 571 people working in the firm, were asked by the company that they should be enforced to leave while 35 full time employees will be retained in the firm with an estimated monthly cost of 183, 000 yuan.
As for the affected employees, the company told the exchange, "The management has decided against permanently laying off the affected employees as it may be difficult to re-hire those experienced workers when the group recommences its soya-bean products production business."
Following the China's legal recommendation, each affected worker will receive 1,000 yuan monthly as their financial assistance.
The firm noted that the monthly estimated cost for the company would roughly be 571,000 or $124, 000 while the production of soya is stopped temporarily.
The company's external auditor will conduct an independent review following the audit committee's request to review all of the necessary documents about the possible causes of the firm's losses.
The committee suggests that the review should focus on the second quarter and six months ended June 30, for this period was highly affected by a China crackdown due to pollution.
They believe that two weeks ago, the pollution immensely affected the firm and caused the significant loss of the company.
During the pollution break through, 50 companies in the Shandong region that opearatins involved in heavy industries and power production operations were shut down by the local government in Linyi.
Investigations are ongoing and more details will be released after all of the necessary reviews were made. According to the firm, the result will be release before August 14.
