As promised, this is to update you on the current situation at Jacobi Carbons and the way we are managing the consequences of the Corona crisis, making sure our people are safe and that we serve you the best way we can. We believe that it is important to keep you updated regularly, as the situation is very dynamic, and communication is key to find solutions for the joint challenges we are facing.
The good news is that we have sustained 100% operations. However, the situation is still fragile and our
production & logistics costs remain exceptionally high due to the crisis. Unfortunately, since our lead
times are relatively long, it will take time before we’ll see the real impact in the market.
As everyone is focusing heavily on controlling the spread of the Corona virus and maximizing our production output, we should maintain our focus on Safety as well. This is especially true at our plants where we have implemented social distancing, been impacted by a reduction in the workforce, have employees performing new tasks, and have modified hours of operation.
Our office teams continue working from home. If a visit to the office is necessary, strict rule are being applied in terms of hygiene, social distancing and ensuring a limited number of people in the office at all times.
We will not travel until September 1, 2020 unless it is absolutely necessary. This is to make sure that we do not take unnecessary risks for the health and safety of our people and you as our customer. Also, we do not want to contribute potentially to spreading the virus. Fortunately, communication technology enables us to stay very close with you as our customer.
This also means that we do not accept visitors to our plants. External visitors may introduce a risk which could lead potentially to being forced to close down the site by local authorities. In order to do everything in our power to keep our sites in full operations, we cannot allow visitors until September 1, 2020.
Your Jacobi representative will stay in close touch with you to understand your changing needs and communicate about any potential supply delays, making sure that we can continue meeting your needs. Pro-active communication is of absolute importance to make sure we can anticipate and serve you best.
ASIAWe have been able to sustain our operations at 100%. Unfortunately, our costs remain high.
The India-wide lockdown is until 31st May, and may be extended, but rules have been loosened. With the reopening of the country, the economy is restarting but with the corona virus still spreading especially in big cities, the risk of contamination is higher than ever. We have therefore enforced strict rules with our employees, such as forbidding the use of public transport and travel between districts. We are still operating with a 50% restriction in manpower, but thanks to rotations and extended shifts we are running at almost full capacity, with our supply chain also nearly back to normal.
The virus spread has been controlled in Sri Lanka, but strict rules remain in place and the economy hasn’t yet fully restarted. The country remains locked down. We are now running a full operation (at 100% manpower), with social distancing and hygiene rules in place.
The Community Quarantine in Cagayan de Oro and Misamis Oriental has been “modified”, with less restrictions and travel allowed between the low risk provinces. Similarly to India though, this must call for even more caution and the continuous enforcement of our rules. We are operating with no problem, and have been able to rebuild charcoal stock.
Vietnam & China
We are running with no problems, but still maintaining very strict hygiene and travelling rules.
As the work for some of the team members in our Shared Service Center requires extensive printing of documents, we have allowed limited work in the office while fully respecting social distancing and hygiene rules. As the team has implemented our “shift approach” safely and efficiently, we continue this approach.
In most European countries, the lockdown has been lifted and we are back to full operations while fully respecting social distancing and hygiene rules.
- Italy: we have sustained full operations in the Basiano plant!
- France: is back to full operations with full staffing, incl. the AMCA team.
- Our operations in Germany, Spain, the UK, and Sweden are facing no disruptions.
Our production facility and warehouse operations remain fully operational.
“Although we are confident having adapted well to the “new normal”, we expect the crisis to last. We should not rule out a new local outbreak, or other unforeseen events that could suddenly hit us or our supply chain. However, we are confident that our broad Manufacturing Footprint, our robust Supply Chain, our capability to adapt and the quality of our People will continue Security of Supply. Focus on health & safety, and close cooperation with you as our customers, remains more essential than ever.”
Take good care.
Remko Goudappel CEO
Jacobi Carbons AB