XANO informs on effects of COVID-19
The consequences of the outbreak and spread of the coronavirus COVID-19 have so far been limited for the XANO Group. As a result of government decisions, our unit in China was closed for one week in connection with the Chinese New Year holidays, but the business has been operational since 11 February.
Currently, deliveries to the automotive industry account for about 11 per cent of the Group's annual revenue. As several major vehicle manufacturers are shutting down their production, parts of our operations need to be temporarily adapted. Consequently, and in accordance with the regulations regarding short-term layoffs, we will, for the time being, reduce the production rate in affected companies within the Industrial Products business unit. These actions concern about 160 people and we see them as temporary measures to minimise the number of redundancies.
The Group's other operations comprise many industries and customer segments, which results in good risk diversification. In most areas, our companies have not yet experienced any major disruptions regarding deliveries, and demand for the Group's products has remained at a relatively unchanged level. However, our preparedness for changeover at short notice is high.