ANNOUNCEMENT OF NOT RELATING TO THE COLLAPSE INCIDENT OF STEEL STRUCTURE FRAME SYSTEM AT TEXHONG KNITTING FACTORY PROJECT

Texhong Knitting Factory Project has 3 contractors executing 3 independent packages:

• • HopLuc Construction., JSC is the contractor for concrete, finishing and MEP work (according to Contract No. TEXHONG-HOPLUC / 20201212 signed on December 16^th, 2020 between Texhong Knitting Vietnam Co., Ltd and HopLuc Construction., JSC).

•  Zamil Steel Buildings Vietnam Co., Ltd is the contractor for steel structure work.

• An Quy Hung Co., Ltd is the contractor for internal road work.

Among the 3 contractors that carry out the project, HopLuc undertakes the largest package, we have been trusted by the Investor and assigned to implement a number of temporary items to serve the whole project, such as: protection fences, service roads, temporary water and electricity systems. Therefore, the Investor considers Hop Luc as the General Contractor and that is shown on the project’s information board, causing misunderstanding by press agencies. However, for steel structure package, the Investor signs a contract directly with Zamil Steel Buildings Vietnam Co., Ltd. At the same time, the investor directly manages Occupation Health and Safety, Construction quality and progress of the other two contractors: Zamil and An Quy Hung. HopLuc does not have any contractual obligations and cannot interfere in the other 2 packages that the other two contractors perform. Therefore, we have absolutely no responsibility for the collapse of the steel structure system on April 21^st, 2021.

We would like to provide a number of documents evidencing:

1. 1. According to the on-site incident report No. TED-QC-Zamil-N0.01 dated April 21^st, 2021 (confirmed by the investor, supervision consultant and Zamil contractor) on the collapse of steel structure frame system from X3 axis to X7 axis of the knitting factory, the primary cause was identified that when the Steel Structure contractor- Zamil Steel Buildings Vietnam Co., Ltd, installed temporary cable anchors to prepare for roof bracing and wall bracing, there was suddenly strong wind, making the roof frame unstable and falling.

• According to the incident minutes on April 22^nd, 2021 (confirmed by the investor, supervision consultant, Zamil contractor and HopLuc-affected) on the collapse of steel structure frame system from X3 axis to X7 axis of the knitting factory, the main contractor is Zamil Steel Buildings Vietnam Co., Ltd. The parties also confirmed the preliminary reason assessed as due to:
  • • The erection was not in correct order. The anti-roll bar link and cross-brace bar link were not done well;

   

• The number of temporary anchor cables was not enough, there was no tension for stretching, and the anchor cable has small cross-section.
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• Cross-roof bracing, gate bracing were not installed enough.In addition, the minutes also clearly states that the incident by Zamil caused a lot of damage to the investor and another independent contractor which is HopLuc Construction., JSC. Accordingly, the parties agree that Zamil will be responsible to compensate or implement equivalent remedies for damages incurred by the investor and HopLuc.
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• Quick Report No. 115 / BC-UBND dated April 21, 2021 of the People’s Committee of Hai Ha district has also identified the cause and the party who are responsible for the above-mentioned incident is Zamil Steel Buildings Vietnam Co., Ltd.

With this announcement, we once again emphasize and affirm that, HopLuc Construction., JSC is NOT RELATED to the collapse of the steel structure system at Texhong Knitting Factory Project- Hai Ha Seaport IP, Hai Ha District, Quang Ninh Province on April 21^st 2021.