Johannesburg, 09 Mar 2020
The outbreak of the coronavirus in China brought the country to a standstill. Many of the companies that stayed closed due to the extension of the Chinese New Year’s holidays are now operating again. However, many companies outside China are experiencing disruptions in their supply chains as a result of the situation in China.
Axis has no manufacturing in China, but some of our sub-suppliers are located in China. We have started to experience extended lead times in our supply chain, which affect deliveries to our customers. However, the majority of our Chinese sub-suppliers are now fully operating again and we expect the remaining sub-suppliers to increase their operations as we move forward. The spread of the virus outbreak to other countries has so far not impacted our deliveries.
As soon as we suspected impact on our supply chain caused by the coronavirus outbreak, our operations team has been working hard to find solutions to reduce any inconveniences for our customers. This includes working with multiple sources for raw materials and components in order to mitigate risk, monitoring stock levels across our supply chain in order to prioritise our efforts, and keeping safety stocks throughout our supply chain. At this point, we have not seen any effects on our supply chain.
We are committed to keep our partners and customers updated about how this situation develops and what consequences it might have. Our view of the situation is becoming clearer, but since the status is continuously changing, we refer our partners to the extended lead time list or to their regular channel for more detailed information.
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