On February 10th, the mandatory leave decided by the Chinese government ended and some production facilities have resumed their work. In other cases, however, Chinese authorities initially extended the mandatory leave until February 17th.
When a factory may reopen is solely at the discretion of the Chinese authorities. Permission to reopen is subject to strict hygiene and safety requirements.
As transport routes, customs, airports and airlines are still affected, we expect delivery bottlenecks for some of our products.
We want to overcome these bottlenecks as quickly as possible and are in close contact with our colleagues in Asia. However, we are not able to foresee, nor can we influence, how the international situation regarding the coronavirus will develop at the present time.
On January 9th this year, the World Health Organization reported for the first time about the Coronavirus. Since then, it has always been in the daily news. Governments are globally reacting on the outbreak and are scaling up their vigilance to get the situation under control.
In China, where the first contamination has been reported, mandatory leave until 9th of February has been ordered in many districts, i.e. Shanghai. This means that factories in these areas will be closed or operate at extremely limited capacity, resulting in a delay of supply or possibly no supply of any products for several weeks.
Jauch’s supply chain and production facilities are partly affected by this situation. Although Jauch has Disaster Recovery Plans, they do not apply in this particular situation, that affects China as a whole. Uncertainty is especially caused by the infrastructural situation, as more and more international airlines have already been cancelling all their flights to China. The further evolvement of this situation cannot be foreseen at the moment.
Our goal is for our business to continue as smoothly and with as few changes as possible, whilst recognizing that the spread of the virus will have certain effects. Therefore, we are regularly monitoring the latest updates on the virus as well as reviewing the measures taken by the various governments.