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MASSMART HOLDINGS LIMITED - MASSMART UPDATE IN RESPECT OF FIRE AT MAKRO STRUBENS

Release Date: 14/05/2004 16:56
Code(s): MSM
Wrap Text

MASSMART HOLDINGS LIMITED - MASSMART UPDATE IN RESPECT OF FIRE AT MAKRO STRUBENS VALLEY Massmart Holdings Limited (Incorporated in the Republic of South Africa) (Registration number 1940/014066/06) JSE Share code MSM ISIN: ZAE000029534 ("Massmart") MASSMART UPDATE IN RESPECT OF FIRE AT MAKRO STRUBENS VALLEY Makro Strubens Valley, the 12th Makro store in South Africa, was opened on 16th October 2002. The store, and Makro"s unique trading concept, met with immediate success and quick acceptance by customers, resulting in the decision to expand the store. Construction on the expansion commenced on 15th March 2004. At 13.30 on Thursday 13th May 2004, a fire was started in the roof by sparks from an angle grinder, being used by a construction worker. The fire quickly went out of control and spread rapidly throughout the rest of the store, totally destroying the building and its contents. In accordance with procedures, the management of the store responded immediately by evacuating customers and staff. There was no incident or panic during the evacuation that took approximately 10 minutes, followed by a full staff roll- call. Trained staff members tried to douse the fire and move merchandise. The Fire Brigade and Emergency Services arrived within 15 minutes and helped to control and contain the fire, the environment, and the safety of customers, construction workers and staff. No injuries occurred to customers or construction workers and four staff members who suffered minor injuries were treated on the site, together with several Firemen who were affected by smoke inhalation. When Makro Strubens Valley was constructed, an additional sprinkler system was installed linked to its own water tanks. With the full knowledge of the insurers, the tanks were being moved during the construction of the store extension and the sprinkler system was disconnected from the special tanks and reconnected to the municipal mains. The water pressure from the municipal mains was not strong enough to control the fire. Environmental issues were addressed immediately. Effluent water and waste is being prevented from flowing into storm drains by the Enviro Serve Waste Management who are containing the spillage and pumping liquid waste into removable tanks. Water and Forestry have been informed and are also checking to minimise the environmental impact. The Fire Department is still on scene ensuring that the smouldering ruin is extinguished as fast as possible to prevent further smoke pollution. This incident was particularly regrettable as the management of Makro has taken significant steps to limit the risks of fire: * Two years ago a comprehensive external risk audit was undertaken in all Makro stores by ASIB (Automatic Sprinkler Inspection Bureau) and VMG Consulting, mechanical and fire engineers, whose recommendations were fully implemented in Strubens Valley. This includes inter alia additional fire sprinklers, emergency signage and detection systems linked to external control rooms. * Highly flammable materials such as chlorine are only stocked in small quantities on the trading floor, with the bulk of the stock being kept in back-up areas. * Staff have been comprehensively trained in emergency/medical and store operational procedures. Permanent staff members will be relocated with effect from Monday 17th May to other Makro Gauteng stores. The importance of trading relationships will be recognised by the relocation of staff to the store nearest their customers. Makro"s customer and trading databases were not destroyed in the fire, and customers will be assured of their guarantees on any merchandise purchased and the appropriate handling of goods that have been handed in for return or repair. A comprehensive marketing campaign is being formulated to entice customers to alternative Massmart stores. Makro is comprehensively insured for the building, assets, merchandise and any loss of profit. All administration pursuant to this insurance is in order and the management of Makro met with loss adjusters at 7.30 a.m. this morning to begin the processing of a claim with a view to opening a new, larger store on the same site as soon as possible before Christmas 2004. No financial loss to Makro or the holding company Massmart is envisaged. Members of the SAPS are to be complimented on their very efficient approach to rapidly determining the cause of the fire, through numerous corroborating statements, copies of which are in the possession of Makro. We would like to thank all Makro staff and all members of the Emergency Services who prevented any serious injury or loss of life. We would also like to apologise to residents in close proximity to the store who have been inconvenienced in any way. 14 May 2004 Enquiries: Rob Pinker Brunswick 083 326 7794 Taryn Proksch Brunswick 083 273 1301 Date: 14/05/2004 04:56:08 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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