Update on Coronavirus epidemic

General situation, as of March 2, 2020

Due to the ever increasing development of the coronavirus epidemic, we provide you with an update on the situation and the actions taken.

We are in close contact with our suppliers in order to obtain the most comprehensive picture possible of the situation in the supply chain.

EnOcean wireless modules are manufactured in European regions that are not affected. So we don’t feel any immediate effects here yet. However, the situation may become critical with regard to components that are partly sourced from China. Production at these sub-suppliers in China has resumed after the New Year celebrations and a mandatory break, but with reduced capacity. Many workers have not yet been able to return to their workplaces.

What actions has EnOcean taken to meet its delivery obligations to customers?

Our European manufacturing partner has components in stock until at least the end of March according to our forecast planning and orders on hand. We are in close contact with our manufacturing partners to ensure the supply of components from orders and blanket orders. Alternative supply sources are being examined for critical components. Nevertheless, we cannot rule out a supply bottleneck for components after March 2020.

Existing orders will be prioritized, new orders will be confirmed with 16 weeks delivery time.

What sources of supply will EnOcean use if the situation in China continues into or beyond March 2020?

If the crisis lasts longer, we will contact European suppliers outside the currently affected regions for critical components such as printed circuit boards. However, as manufacturing capacities in Europe are limited, supply bottlenecks may occur. For this reason, we can currently only confirm new orders with a delivery date of 16 weeks.

Once Chinese companies have ramped up their production to 100 % again, there will probably be a bottleneck for logistics companies. What actions has EnOcean taken here?

We currently have stocks of raw materials, so we are not affected by a bottleneck in logistics companies that is expected in the short term.

In general, the health of our employees and partners is very important to us. That’s why we will take further precautionary actions where necessary, depending on the situation.