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February 19, 2020
By: Kerry Pianoforte
Editor, Coatings World
As this issue goes to press, China is experiencing a major crisis with the spread of the deadly coronavirus. As of Feb. 2, China had 17,205 confirmed infections and the virus has killed at least 362 people. Unfortunately, that number is likely to rise as the days go by. The outbreak originated in Wuhan, Hubei Province, but as cases begin to be reported globally, including 11 in the U.S., experts fear a pandemic. The Chinese government has put Wuhan under quarantine and shuttered movie theaters and restaurants throughout the county. China is already experiencing negative effects. Coming back from the Lunar New Year holiday, stocks in China sank eight percent on Feb. 3. According to an article in the New York Times, international companies that rely on Chinese factories to make their products are already warning of costly problems. “Apple, Starbucks and Ikea have temporarily closed stores in China. Shopping malls are deserted, threatening sales of Nike sneakers, Under Armour clothing and McDonald’s hamburgers. Factories making cars for General Motors and Toyota are delaying production as they wait for workers to return from the Lunar New Year holiday, which has been extended by the government to halt the spread of the virus. International airlines, including American, Delta, United, Lufthansa and British Airways, have canceled flights to China.” These developments will certainly have an impact on raw material suppliers to the paint and coatings industry. Although it is too early to fully assess the impact, companies are on high alert. Sun Chemical released a press release to report that it is monitoring its supply chain, including raw material and intermediate suppliers and logistics providers, amid the coronavirus outbreak. “Proactively managing our customer orders, inventory levels, in-transit shipments and open order levels is a critical path for us,” said Jeffrey Shaw, chief supply chain officer, Sun Chemical. “We have established control teams to manage each of these areas and take the required precautions in order to prevent any supply disruptions. Specifically focusing on individual materials and suppliers will enable us to take any necessary precautions. “At this time, our focus also includes materials from China and other high-risk regions that supply to us. We will continue to keep our customers updated during this process. Bottom line, we are committed to working through this process with our customers to make sure supply disruptions are minimized.”
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