Malta’s largest exporter, ST Microelectronics, is counting the costs of a 15-hour power cut on Sunday, though a spokesman said it was too early to talk about compensation claims.
The microchip giant suffered a power failure at 5 a.m. and power was not restored before 7.45 p.m.
The long cut followed another that had lasted some 15 minutes at around 3 a.m.
According to Enemalta technicians, the problem was the result of two faults triggered by nearby road works.
Sources said the faults developed in the recently completed Triq Garibaldi and Council of Europe Road in Luqa.
A company spokesman said “it was obvious” the firm was calculating its losses after such a long power cut.
Sources said 15 hours without production would have cost the company some $1 million, but the spokesman would not be drawn into giving estimates.
Apart from the lack of production, which will probably see it fall behind on its export orders, the company also had to pay wages for some 600 employees who were idle for such a long time, the sources said.
Moreover, the company had to engage workers on overtime to make up for the missed production time.
When asked whether the company was looking into taking legal action against Enemalta or a possible compensation claim, the spokesman said it was “too early” to talk about these possibilities.
An Enemalta spokesman said a meeting was scheduled for the two parties to discuss this power cut and establish a way forward.
The spokesman said Enemalta had built the Kirkop Distribution Centre specifically for ST and currently had three dedicated feeders – a 33kV feeder from Marsa and Delimara power stations and two 11kV feeders from Marsa power station.
A second 33kV feeder to the Kirkop centre was planned and should be completed by the end of the year, ensuring further security of supply, the spokesman said.
This additional feeder will be laid in existing tunnels and will therefore not be susceptible to stresses caused by road works.
ST Microelectronics had a bad patch in the aftermath of the global recession two years ago and had to be assisted by the government as part of the tailor-made stimulus packages for factories that enabled it to retain production in Malta.
In 2010 the semi-conductor company was forced to introduce a package of austerity measures to remain on the island.
The Kirkop-based plant employs more than 1,500 workers and exports about 715 million pieces of electronic devices a year. ST is Malta’s biggest private employer.
Asked why such a large company did not have any back-up generators in case of power failures, the spokesman said even the largest generator would not be enough to cope with the demand.
ST Microelectronics required as much power as the whole of Gozo so a generator would not be enough to power all the company’s machinery and robotics. Generators would only provide enough electricity for some computers and basic equipment.