Statement on Coronavirus (COVID-19) outbreak
OMRON is closely following the development of the coronavirus outbreak in the EMEA region and taking appropriate measures.
OMRON adheres to the guidance from relevant authorities, the ECDC and the WHO.
The safety and wellbeing of all our employees and relations is our highest priority.
Hoofddorp, 16th March 2020 – In response to the ongoing Coronavirus (COVID-19) situation across the EMEA region OMRON Healthcare would like to provide you with the following information.
After initial reports of the outbreak of the Coronavirus in China the OMRON Group has constituted a global task force to address, monitor and mitigate the impact of this outbreak.
As of today, there have been no confirmed infections of OMRON employees within the EMEA region. We continue to closely monitor developments with respect to the Coronavirus. In accordance with OMRON’s sustainability policy we continue to take steps to ensure the safety and wellbeing of our employees which we consider a top priority. Full travel restrictions and working from home policy are in place. Reviewing business continuity plans prudently, we are banning group meetings and don’t accept visitors coming to our locations. Participation in events and congresses has been suspended.
The EMEA task force team reviews the situation of the Coronavirus outbreak and COVID-19 consequences in this region on a daily basis to determine the appropriate measures. Our priorities in responding to the outbreak is to reduce spread of the illness, protecting the safety and well-being of our people and maintaining business continuity.
Supply Chain and Customer Impacts
As you are aware, the entire global supply chain has been impacted due to the coronavirus outbreak, which has led to large-scale disruption in marine container shipping services. OMRON expects that the impact to shipping will result in a reduction of delivery reliability, route frequency and availability in the short to mid-term.
While it is more difficult to confirm available logistics and delivery dates at this time, we believe our global manufacturing and logistics capabilities will keep us well positioned to work through these challenges and, if necessary, to help customers put the appropriate mitigation plans in place. We are working to secure future vessel space allocations to minimize delays in the inbound flow.
We are verifying our suppliers' ability to supply raw materials to our sites around the world to continue running our manufacturing sites.
We realize this situation remains very dynamic. We will continue to provide updates as we learn more. We are confident in our preparation and contingency planning for situations such as this. We remain committed to providing the superior service and support that our customers have come to expect of our company throughout this situation.
Questions and Answers
1. What measures is OMRON taking regarding its Italian operations?
OMRON is carefully monitoring the situation in Italy with special consideration to the Northern regions of Veneto, Lombardy and Emilia Romagna. We are in contact with our Management & HR from the Italian entities to discuss the local situation and required actions, enabling employee to work from home as much as possible in order to reduce potential risks.
The health of our team, our partners and their families is our top priority. For this reason we temporarily close our manufacturing department. Other departments stay operational while employees will be working from home. We continue to monitor and mitigate the impact of this outbreak and plan to restart production as of April 1st.
We have suspended business travel and are don’t allow visits and visitors in Italy unless strictly necessary.
2. Which OMRON manufacturing sites or offices are impacted at this time?
Due to the nature of the disruption in China, our operations there were negatively affected in terms of output. As of the 9th of March, all manufacturing sites in China have restarted their operations again (if this is correct). The exact scope of impact of this on our supply chain needs to be determined per customer. OMRON does have manufacturing sites in locations in China that were under extended holiday or restricted work return dates. It's important to remember that OMRON has manufacturing sites around the globe to help continue production of our materials in an event such as this virus outbreak. As of today, the offices and manufacturing sites of OMRON in Italy and EMEA remain operational within restrictions.
3. Which products are at risk?
All of our manufacturing plants and facilities in Asia Pacific outside of China have remained fully operational hence limited risk from these locations at this time. The issue we continue to face is the slowdown for logistics as a result of slowdown at shipping ports, airfreight services and the shortage of trucking we're seeing country to country. We are working to secure future vessel space allocations and using track and trace of all shipments and airfreight in transit to provide customers with updated estimated arrival times.
4. Do you have any impact from your suppliers to produce materials?
Our procurement team has been actively engaged with our key raw material suppliers to understand any impact. Inventories were built up prior to the Lunar New Year and at this stage we do not foresee any shortage on key feedstocks to continue production for our customers. We continue to work closely to ensure our suppliers can meet our needs to keep our manufacturing processes running.
5. What issues are you seeing with shipments around the world at this time?
Like many other companies exporting globally, we are facing logistics and shipping challenges as ports, airplanes and trucking resources have been constrained. While it is more difficult to confirm available logistics and delivery dates at this time, we believe our global manufacturing and logistics capabilities will keep us well positioned to work through these challenges and, if necessary, to help you put the appropriate mitigation plans in place. We realize this situation remains very dynamic, as information continues to change day-to-day, and we will continue to provide you with updates as we learn more and confirm logistics and delivery dates.
6. Are OMRON shipments from areas impacted by COVID-19 safe to receive at our facilities? Have they been fumigated, or other protective measures been implemented to contain the spread of the virus?
No guidance has been given by the World Health Organization that fumigation or any other pro-active measures need to be taken in the handling and shipment of materials at this time.
7. What impacts do you expect as a result of the rapid spread of the virus now being seen in Italy and other areas of the world?
All travel from an to Italy has been banned and we are following the guidelines as set out by the authorities. All affected employees will be offered the option to work from home. Beyond that we do not see any impact to our business currently. We will continue to monitor the situation daily and will stay closely aligned with our customers in these areas. In the so called “yellow zone” of the Northern Italy (and more in general in all Italian territory) sales activities involving customer meetings and events have been restricted to comply with specific conditions: only when strictly necessary and agreed with customer, max. 3 persons involved in total and following the health and safety recommendations from authorities.
8. When can customers expect to know more about any potential impacts?
Our commercial teams are very engaged with customers and are working to identify any potential impacts as we work through this together. our sales teams are working with customers daily to assess the situation and potential slowdown in shipping, airfreight and delivery.
9. What restrictions has OMRON implemented to keep its employees safe and healthy?
OMRON continues to diligently monitor the evolving situation daily and is taking steps to ensure the safety and wellness of our employees. This includes extending travel restrictions (both internationally and domestically for Northern Italy plus other regions and countries as identified by they WHO), reviewing business continuity plans, prudently evaluating the need and attendance at group gatherings and working to implement visitor guidelines for those coming to our locations around the globe.
10. Does OMRON have a Pandemic Preparedness Plan if the situation continues to rapidly escalate around the globe?
At OMRON, we have a Corporate Pandemic Preparedness Plan, which helps guide our actions in responding to such outbreaks. The plan includes measures to maintain business continuity including IT, financial, manufacturing and supply chain functions. We have also established a team that is working to determine the appropriate measures which should be taken during this event. This team will help guide our actions in responding to a potential global outbreak.