© TT Electronics Electronics Production | April 15, 2020
TT takes extra steps to fortify itself during the pandemic
Given the uncertainty and the unknown duration of the COVID-19 pandemic and the reduced outlook for economic and industrial output globally, TT has taken actions to reduce costs and protect our cash flows.
The company says that it is following the advice of local authorities around the world as the situation develops whilst adopting safety standards to minimise the risk from the virus. “Across all of the group's facilities we have implemented personal protection measures, including additional hygiene and social distancing, building on the lessons learned in our two Chinese facilities through January and February,” the company writes in an update. The company says that its operations continue to design and manufacture products to meet the needs of its customers in medical, aerospace and defence markets; this of course includes equipment to support front line medical operations. TT’s operations in China have quickly returned to full capacity with the supply chain supporting the return to this level of activity. At this time nearly all of the group’s facilities remain open, except for three smaller facilities in Malaysia, Tunisia, and Barbados. Due to the nature of the situation, namely the uncertain development and duration of the pandemic, TT says it has taken extra steps to reduce its costs and protect its cashflow. These actions include reductions to capital expenditure, other than for health, safety and environmental matters or to maintain production, a temporary hiring freeze and the curtailment of all discretionary expenditure. Adding to this, the members of the Board have agreed a 20% salary reduction, effective 1 April 2020, for a minimum of three months. "We delivered a good performance in the first quarter whilst managing disruption in Asia. The period ahead is uncertain for everyone as the current global crisis develops and TT will not be immune, but our strategy has positioned TT well to deal with these challenges. I am very proud of the outstanding response of our teams across the globe to COVID-19 and this has allowed us to continue to support our customers in critical industries," says Richard Tyson, Chief Executive Officer, in the update.