The effects of the coronavirus COVID-19 on our “supply chain” are becoming more and more clear. That is why we are herewith sending an update on the current situation.
Most of our suppliers, as well as our own site in Suzhou, have started production with limited capacity. Unfortunately, the increase in capacity is slower than expected. The reason for this is the strict conditions imposed by the Chinese government and the cities. Employees may only return to their homes after a 14-day quarantine, under medical supervision. At the moment we expect a period of about 4 to 6 weeks until all companies are available again with full capacity.
Our most important PCB manufacturers and suppliers of mechanical and electrical components currently work with a 50% capacity. Due to this shortage the delivery time increases from 4 to approx. 8 weeks. This delay affects the entire supply chain. We are currently checking all placed orders and try to get confirmed delivery dates for the components. Resulting delays will be communicated by our sales staff.
Another critical point is the air freight traffic to and from China. At the moment there are massive bottlenecks, which will also extend to sea freight. Various airlines have already completely stopped the traffic or increased the prices enormously.
Due to the situation, this event must be classified as “force majeure”. The entire supply chain is affected. We therefore ask for your understanding and indulgence.
Through close cooperation with you and the constant flow of information, we hope to be able to overcome this critical time to survive as unscathed as possible.
Thank you very much for your trust and understanding.
Your Variosystems Team