Demerara Distillers Limited (DDL) has assured shareholders that the fire at its Diamond location last month will not affect their dividends, even as the company’s insurance provider continues investigations for assets that are fully insured.
“To our shareholders, they won’t be affected in anyway whatsoever by the fire,” Deputy Chief Executive Officer of DDL Vasudeo Singh told the Sunday Stabroek when contacted on Friday.
“All of our assets are fully insured…investigations are still taking place,” he added.
This newspaper understands that while production of all of the company’s products were affected in some way by the fire at its self-generating power station, its mineral water production was mostly affected but output is now back to normal. DDL’s bottled water had been in short supply in recent weeks
The company had to swiftly source power to supply its operations as the Guyana Power and Light company could have only assisted it with a fraction of the 5 MW of power that its operations need.
Earlier this month, the company which is one of the largest of the few publicly traded ones here in Guyana, had announced that it had successfully resumed operations at several of its facilities.
However, there had been no word on the value of the damage suffered or when full operations will resume. DDL had also not spoken about insurance coverage and what power source it was relying on.
However, DDL’s management subsequently assured stakeholders of a swift recovery and continuity in operations.
According to a statement, the TOPCO plant which produces fruit juices and Savannah milk products, was back to full operational capacity. The Wines and Spirits plant was functioning in a partial production mode, while the non-alcoholic beverage plant was projected to be fully operational by the mid-October. The distillery it said, was set to resume operations as soon as possible.
Initial investigations revealed that the fire on September 27th started in one of the seven generators housed in the power station. This particular generator had recently undergone scheduled maintenance. The fire rapidly spread, engulfing the entire power station and damaging all generators and the facility itself. The statement said that thanks to the rapid response of DDL’s firefighting team and the Guyana Fire Service (GFS), the blaze was contained to the power station, preventing it from affecting other vital infrastructure.
Seven
The GFS had said that the fire resulted in extensive damage, destroying seven Caterpillar generators, nine transformers, and additional equipment. Fortunately, no injuries were reported among DDL staff or firefighters during the incident.
DDL said its actions ensured that local fruit farmers experienced no interruptions in product purchases, thus minimizing economic impact. The company said it was actively collaborating with resellers nationwide to mitigate potential stock shortages resulting from the fire.
DDL’s directors and management in their statement had expressed their deep gratitude to the emergency services for their prompt response and professionalism. The Guyana Fire Service’s efforts were pivotal in limiting the fire’s impact, with teams arriving quickly and employing a combination of foam, dry chemicals, and water to extinguish the blaze.
On the day of the fire, Brian Deoraj, a 39-year-old engineer employed with the company, arrived at work and observed that one Cummings 3516 generator and one Caterpillar 3520 generator used to power the entire compound were not working to their optimal.
Sometime at about 4.20 pm, there was a power outage, which caused him and other staff members to proceed to check the Generator Room. On arrival, they observed that the Caterpillar generator was on fire.
An alarm was raised, and the Fire Service was informed. The Guyana Fire Service Fire Tender 92, under the command of sub-officer Lenander from Eccles Fire Station and 20 ranks, arrived on the scene and went into action.
Extensive damage was seen on all of the generators in the room and the top of the building. No one was injured.
Ravi Doobay, a farmer, who was inside the compound when the fire started, had told Stabroek News that he had carried a supply of cherries to DDL for processing and while there, a fire suddenly started in the room that housed the generator. He added that the alarm then went off and there was smoke all over; the lights went off as well.
This newspaper understands that the insurance investigations will address what caused the fire in the generator and where liability for that might lie. But while those investigations are ongoing neither the company nor its insurance providers can speak on the issue.
Questions have also arisen as to why the entire power generation area went up in flames and whether there wasn’t a way to limit the fire from spreading to other generators.
Fire Chief Gregory Wickham, in a release on September 28th, 2024 praised his team’s professionalism and commitment, stating that their actions prevented what could have been a catastrophic situation. The police and local power companies also provided vital support during the incident.
