Customer Notice on Coronavirus-related Disruptions

Last update: Wed · 10:52 UTC (2020-02-28 04:06 UTC)

Overview

Due to the SARS-CoV-2 (aka. 2019 nCoV) outbreak originating from Wuhan, we currently project moderate to severe disruptions for international trade connections and manufacturing, also impacting raw materials supply and logistical support. Currently our impression is that the coronavirus outbreak is not contained and that disruptions will hit the European economic zone imminently.

Kautschuk-Group produces the majority of its product portfolio in China, Germany, and the United States. Most of our products are produced locally and redundantly, however, even in local production we are still bound to factors such as limits on production capacities and international supply chain issues.

Customers whose orders are affected by the situation will be notified by us as a matter of course. If you have questions about the lead time impact on your products, please contact the Kautschuk-Group order processing team about forecasting and analysis.

Updates will be posted to this page: https://kautschuk.com/status.

Expected Disruptions in the EU

Currently there are no disruptions to production or logistics in our European facilities. However, we expect this to change within the next few days. We will keep customers with outstanding orders informed if complications arise.

China Production and Logistics Impact

As a result of disruptions in China, product shipments from the country scheduled for March and April 2020 are currently affected and will be delayed. Production in Germany and the United States may be delayed due to supply chain disruptions regarding raw materials. Most of Kautschuk-Group's Chinese production facilities and local logistics facilities are currently closed as ordered by the local government, and will remain offline until further notice in order to protect workers' safety and limit the spread of the epidemic. The situation is evolving and we are monitoring it closely.

JEC Paris 2020 Postponed

The organizer of the JEC WORLD trade show has notified us that the event will be postponed. We regret that we will not be able to meet many of you in person, but we support this decision completely. For more information about the status of JEC WORLD, please refer to their website.

FAQs

What about our meeting?

Kautschuk-Group has made the decision to suspend all pending business travel world-wide at this point. Employees and partners should be holding web or phone conferences wherever possible, or reschedule non-essential meetings.

What is Kautschuk-Group's supply chain policy regarding outages?

Kautschuk-Group manufactures most products redundantly in Europe and in China. In theory, this minimizes disruptions due to local outages and enables a smoother global coverage. The conditions of raw materials supplies for product synthesis vary by product. While we generally aim to keep at least one full month's worth of raw materials on hand, there are some substances that are manufactured on a just-in-time (JIT) model. Regarding final products sold to our customers, we generally have at least one full month of projected demand in stock, unless customer-specific agreements stipulate that the product should be shipped directly to the customer after production. In the latter case, outage impacts will obviously be felt immediately. In all other cases where we supply customers from stock, disruptions may occur after a month of sustained outages.

Does Kautschuk-Group have a disaster recovery plan?

Kautschuk-Group has separate disaster recovery plans in place for our offices and manufacturing plants, aimed at minimizing customer impact and enabling a timely continuation of operations after an event. Disaster recovery procedures reflect local circumstances and are subject to regular audits.

Does Kautschuk-Group have a business contingency plan?

In situations where the safety of our employees is at stake, such as epidemics or political instability, our policy is to close local operations until the situation improves. Kautschuk-Group can sustain global operations with minimal disruptions if any one office should be temporarily or permanently out of commission. Regarding most but not all products, if any one production site is impacted by an outage, another plant is configured as a designated fail-over site and will be able to continue production.

However, shortages in raw materials and logistics can still impact supply quantities and time tables, irregardless of any contingency plans.