Explosives maker Fabchem China announces profit warning

Fabchem China workers assembling explosives.
Fabchem China workers assembling explosives.PHOTO: FABCHEM CHINA

SINGAPORE - Explosives maker Fabchem China announced a profit warning on Monday, to caution shareholders that its revenue and profit are expected to be "significantly lower" for the second quarter or the three months to Sept 30.

The company attributed it to closure of ports activities because of explosions at warehouses at the Port of Tianjin and a softening Chinese market.

On Aug 12, a series of explosions in Tianjin killed more than 160 and injured hundreds others.

Even though Fabchem China's unit does not export through Tianjin, the other parts it uses have been temporarily closed, and affect customers' vessels from docking at the ports. Shipments to Australia have been affected for instance.

"China has been experiencing a slowdown in its economic growth and the broad-based weakness in global commodity prices continues to impact mining activities in China," Fabchem said in a release on Monday.