© Neways Electronics Production | March 31, 2020
Neways provides update on COVID-19 impact
The EMS provider says it has taken various measures to limit the risks to the health of its employees, as well as its clients and suppliers. In addition, the company has taken measures to safeguard business continuity.
The company says that it has set up two corporate taskforces to monitor the risks associated with COVID-19 as closely as possible and proactively anticipates on these risks. The Neways General Taskforce meets on a daily basis to discuss the current situation at all operating companies and coordinate the measures. The aim for this taskforce is to ensure that the entire group complies with political decisions and recommendations as well as to ensure that production continues within set parameters, the company states in a press release. The Demand & Supply Taskforce will coordinate communication with clients and suppliers and make sure that any delays in the supply chain are identified early. All Neways operating companies in the Netherlands, Germany, the Czech Republic, Slovakia and China remain operational at this time. While still operational, the company does expect a greater impact on the operations in the second quarter as a result of delays in the supply of components and the temporary closure of its clients’ production facilities, especially in the automotive sector. In addition, the borders of some of the countries where its suppliers are located have been temporarily closed and it is unclear when these borders might reopen or whether further restrictions will be imposed. Although Neways’ financial position is sound, there is insufficient clarity at this time about how long the current situation may last and what the potential impact may be for the company’s clients. To safeguard its financial position Neways is focusing on cash management and maximising its available cash in the coming period. These measures include limiting operating expenses and using government funds and subsidies for the temporary reduction of working hours. “In these unique circumstances, the health of our employees and their relatives is our top priority, in addition to maximising the continuation of our global operations. I am extremely proud of the flexibility and resilience of our employees, who are doing their utmost to minimise the impact for our clients. In this period, we rely even more on cooperation and mutual understanding between all the parties involved. We are therefore cooperating even more closely with our suppliers and clients to limit the impact for everyone active in the chain,” says CEO Eric Stodel, in the press release.