The management of NETZSCH Pumpen & Systeme GmbH views the development of the corona virus at home and abroad with great interest day by day. Within the global structure of our company, we examine the expectations and risks of our business partners with regard to the expected adverse effects on the Chinese market.
Do you have production in China?
Yes, we produce in Lanzhou and Anting for the local market, South East Asia and Australia. We do not export pumps from China to Germany.
Do you source raw material from China?
We buy casting parts in China. We are in a frequent contact with our suppliers. Last week they produced 50% of the parts. We expect full production again in week 8/2020. However the most critical process at the moment is the Logistics. Usually we get the parts from China by train. At the moment it is not clear when the logistics companies will start to work again. Already now we reserved capacity for cargo flights to get parts asap to Europe.
What action will be taken by you to reduce the risk?
We are in the position to buy casting parts as well in Brazil and in India where we have pump production as well with a local supplier base. In addition we are able to make pump housings and end studs as welding parts instead of casting parts. This will increase our costs, but can guarantee, that the delivery time for the customer is not endangered.
We take proactive measures to reduce negative effects to a minimum.