February 03, 2020

Special Arrangements and Updates due to Covid-19

Due to the outbreak of Covid-19 (previously known as the Corona Virus), we would like to inform you of the precautionary actions that we have put in place in order to ensure the health and safety of all our stakeholders. In addition, we will give you an outlook concerning our planned supply of your products.

In Asia, we have three main locations:

  • Our manufacturing facilities in Jiangyou, Sichuan
  • Our Shenzhen office in Guangdong
  • Our Hong Kong office
  •  

    In total in Asia, we have around 550 people working in ONETEAM. As of today, we have no case of infection of a colleague or a family member in any CML location.

     

    How will this affect our manufacturing timeline?

    The production at our manufacturing facility is in full swing and orders are increasing rapidly, especially from the medical sector by Chinese government. Our material supply chain is secured and we do not foresee any risks concerning our production. Material suppliers have resumed production as of today and we have plenty of stock on hand. Regarding our general output performance, we are confident that we can meet a high majority of demands, considering that we have urgent medical product orders from the Chinese government to help the fight against the Covid-19.

     

    Our first train shipment from Sichuan has been shipped out on 13th February. Airfreight shipments directly between Chengdu and Frankfurt will encounter delays, since flights have been diverted through Beijing, which extends the transportation time by an additional day. Urgent shipments can be shipped out by airfreight from Jiangyou to Shenzhen and then cross-border.

     

    For our other partner factories we are happy to inform you that all of them have restarted production and are rushing to get back to full output and production capacity. This will require some time since workers returning from different provinces need to quarantune for 14 days.

     

    Our SCM team is in close contact with all our suppliers and have put an escalation team in place to respond to urgent orders.

    How will this affect your shipments?

    CML Logistics operations between China-Hong Kong and Hong Kong–Europe/Mexico are working smoothly without any disruption.

    Transportation ways within China have become more complicated with potential risk for delays caused by disruptions within China’s infrastructure. Our global Logistics team is in daily contact with our forwarders to ensure there won’t be any delay for your shipments.

    Will our services and support be compromised?

    The answer is no, as we have invested into a greater IT facility, our team in Hong Kong and Shenzhen are connected in our virtual office via cloud, allowing us to continue supporting you like usual.

     

    In Hong Kong and Shenzhen, we have implemented the requirements of the local government. The safety of our team is a top priority, our Hong Kong office is open but we have extended our home office arrangements to our team in Hong Kong and Shenzhen to February 23th.

    Outlook for the coming weeks

    We currently stand 46,247 cases, 1,491 deaths and 7,099 recoveries. China admitted shortcomings in dealing with the situation and is doing everything in its power to control and improve the situation.

     

    When China reported a drop in the number of new cases of the deadly coronavirus earlier this week, hopes were raised that the outbreak might be slowing down. But on Thursday, health authorities in Hubei, the province at the center of the epidemic, announced there had been nearly 15,000 new cases overnight — almost 10 times the number of cases announced the previous day. The government was quick to point out the outbreak didn’t suddenly get much worse but the authorities had changed the way they reported cases in order to allow more people to access treatment faster.

     

    China expects around 160 million employees to return to their workplaces in the next week, as the country seeks to minimize the economic impact of the novel coronavirus. Next Tuesday marks the official end of the Lunar New Year period

     

    The huge mobilization of people comes despite prior warnings for citizens to avoid large crowds.  In a news briefing Tuesday, Chinese officials said action would be taken to reduce the risk of transmission.  These include limiting the carrying capacity of long-distance coaches, enhancing the sterilization of public transport, and carrying out temperature checks on passengers, said Xu Yahua, Director of Transport Services Department. 

    We will keep you updated with more details and make reliable plans for you and your products.

    For more information please feel to get in touch with your local contact person or contact us directly at info@cml-eurasia.hk/ info@cml.ag

     

    Thank you for your kind attention and support!

     

    Updated on 14th February 2020