New Covid-19 Restrictions Placed on China
As an organization, we continue to actively monitor all aspects of our upstream and downstream supply chains in light of the ongoing war in Ukraine and the escalation of the Covid-19 outbreak in Shenzhen.
The latest outbreak of Covid-19 culminated in the suspension of public transport and the movement of people over the weekend of the 12th March, with the majority 17 million-strong population in one of the Chinese most crucial technology hubs being caught off guard by the sudden announcement which has led to a cessation of some manufacturing.
While there is currently no specific timeline for easing these restrictions, PCB Connect Group has been reviewing the situation over the weekend of 12th March; we can confirm that production is continuing in the majority of the PCB Connect group approved factories. Most of our factories are positioned across China, away from Shenzhen, and are not affected. Our factories located in Shenzhen are looking for opportunities in line with guidance notified by the health department of Shenzhen.
While it is anticipated that the PCB Connect Group factory management team will be unable to travel to the manufacturing sites, we continue to monitor and progress our WIP through daily video calls with the factories and utilizing direct video feeds to monitor product build-up in key bottleneck areas.
We remain in close dialogue with our logistics partners in identifying the likely impact of the lockdown on the movement of goods in and out of Shenzhen and Hong Kong once manufacturing resumes. It is anticipated that the delays in moving products out of Shenzhen will become the primary concern over the next few days, and we will outline further news once it becomes available.
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