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 we serve you in the best way possible.
We have been running our operations at 100% in the past 2 weeks, even in India where the alert-level is highest since the utbreak. We were able to do so by taking additional measures in our operations and supply chain, which all come at a cost. Our lead times have reduced overall but remain high for certain products of which demand has increased strongly.
As everyone is focusing heavily on controlling the spread of the virus and maximizing our production output, we are maintaining our focus on safety as well. This is especially true at our plants where we have implemented social distancing strictly, employees performing new tasks and have modified work shifts, and restricted presence of certain employees and contractors at the factories.
Our office teams continue working from home until September 1, 2020. This may be extended depending on the region. If a visit to the office is necessary, strict rules are being applied in terms of hygiene, social distancing and ensuring a limited number of people in the office at any one time.
We will not travel until September 1 unless it is critically important and pre-approved. This period may be extended depending on the region. 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 to 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 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. This time period may also be extended, depending on the region.
Your Jacobi representative will stay in close touch with you to understand your changing needs and communicate about any prospective 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. In order to meet the market-needs, we would like you to cooperate in keeping stocks as low as practically possible. We cannot allow stock build-up in times of shortage
All our Asian factories are running at maximum capacity and the close collaboration with our charcoal suppliers has enabled us to rebuild raw material stocks. We are still maintaining very strict hygiene and social distancing rules in our factories, transport of people and goods require utmost attention, and safety remains our prime focus.
- INDIA: The alert level is higher than ever for our two factories in India. The number of COVID19 cases in India now exceeds the million and the virus is spreading fast in Tamil Nadu (currently 5000 cases per day). The closure of a large factory nearby in Tirunelveli makes the situation extremely tense in our Nova factory. On top of the measures taken which we shared in the previous updated, we have had to quarantine a higher number of employees as a precaution and prevent contractors from coming to the
plant. We are experiencing small delays in logistics but continue to run at full capacity at both the factories.
- The PHILIPPINES: TMindanao remains under “General Community Quarantine” but is fortunately not the worse affected region in Philippines. Although this limits transport, we are running without restrictions.
- VIETNAM: has eliminated the virus and the country remains closed for foreign travel.
- SRI LANKA: has seen a resurgence of cases after one month without a new Covid case. Although we do not expect a new country lockdown, we stay alert and have built contingency plans. Last week, Jacobi Sri Lanka celebrated it 15 years anniversary. A great milestone achieved! Due to the pandemic, the celebration was modest; Board members attended virtually and strict social distancing an hygiene rules were followed locally. Speeches were given given through TEAMS, drones were shooting pics and video’s and a delicious cake was cut at the plant. A celebration we won’t easily forget…
- CHINA: has the situation under control overall, but we continue to enforce strict hygiene and social distancing rules.
- JAPAN: OGC’s plants in Minabe and Hakata are also running without disruptions.
In most European countries, the lockdown has been lifted and we are back to full operations while fully respecting social distancing and hygiene rules. If a resurgence happens close to one of our operations, immediate precautionary actions are taken.
- Italy: we continue to fully operate in Basiano.
- France: is fully operating as well with full staffing, including the AMCA team.
- Germany: we continue to fully operate in Premnitz.
- Our operations in Spain, the UK, and Sweden are facing no disruptions.
Our production facility and warehouse locations remain fully operational, however, at a heightened sense of alert as local surges have started to occur. We are maintaining the highest focus on preventive measures within our facilities to safeguard continuous operations.
“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