Although it seems China has already passed the height of its epidemic, we continue to see cases arising and being reported in other countries. Our thoughts are with the people affected by this global health emergency and our immediate focus is on the health and safety of our employees and their families.
We wanted to update our partners and customers that situation in Taiwan is relatively well contained due to early actions from Taiwanese government and CDC, to keep people safe and informed about the Coronavirus. EDT have been foliowing government guidance to take precautionary actions to help ensure the safety and wellbeing of our employees.
Concerning the supply chain in China, most of our suppliers have resumed production and recovery in factory activities have been accelerating. Now more than 80% of suppliers have capacity recovered and reached 60% capacity or higher compared to pre-outbreak of coronavirus. Although epidemic in China slows and supply chain are rebounding as expected, we still foresee extended leadtime in general during the next months. Our sales team will contact customers directly if there are any of such anticipated changes or delays.
While hoping the extensive efforts from different countries to control the virus will be effective, EDT will continue to monitor the situation and take necessary measures.
To whom it may concern
Since our previous announcement, EDT has been paying attention to the development of novel coronavirus outbreak, now known as COVID – 19. It remains largely contained to the mainland but manufactures from different industries worldwide are expected to feel the effects of the outbreak, especially the disrupted supply chains due to China`s factory shutdowns.
Reviewing EDT´s supply chain in China as of today, 80% of our suppliers have begun to bring factory back online this week after prolonged Lunar New Year holiday. However, productions are ramping up slower than expected due to a low operation rate as cities are stille in a quarantined state. Making it difficult for workers to return to the factories. Even if returning workers managed to reach the factory, they need to remain in quarantine for 14 days. Therefore, current production capacity is only around 25%-30% and we estimate another month will be needed to restore production to normal capacity but so far production orders are only affected by a very limited degree between 2~4 weeks because EDT´s main production is in Kaohsiung Taiwan thus less impacted by the epidemic.
We have around 20% of suppliers that has not resumed operation yet, but resumption of production is expected to be no later than end February. By early March, we should have a clearer picture on how coronavirus outbreak will impact deliveries beyond the current quarter, if recovery is not delayed. Due to the situation, we are foreseeing increase in leadtime for new orders in the next couple month, up to 30~60 days longer than usual. We appreciate your understanding and cooperation, let`s get through this difficult time together.