Coronavirus Outbreak

07/02/20

Coronavirus Outbreak and its effect on the Würth UK Supply Chain

As part of the global Würth Group, Würth UK has always endeavored to produce the highest quality products sourced as locally as possible. The vast majority of products are manufactured in Europe, particularly Germany and Switzerland. This means we have direct access to our manufacturers and supply partners as well as reducing lead times and improving the carbon footprint of the products we sell.

Nevertheless, as we strive to give the best possible products at competitive prices, a proportion of the raw materials that go into some products is sourced in China and the Far East.

The outbreak of the Coronavirus (2019-nCoV) in China is now starting to have an impact on global supply chains. The Lunar New Year holidays in China were extended, plants remain closed and the authorities have asked the people to stay at home as far as possible. This is resulting in supply shortages due to production halts and resultant lack of transport options.

At Würth UK we are in the fortunate position that we increased our stocks of all key products as a precaution against any no-deal Brexit. We have maintained those high levels of stock and intend to do so for the rest of the year ready for any potential supply issues at the end of the transition period in December of this year.

We are in a stronger position to continue supply as normal even if the shutdown continues for some time yet.

Unfortunately, our stocks are finite and whilst we have more inbound from the Far East, for certain lines we may have to invoke Force Majeure clauses in our supply agreements as both we & the rest of the country fall victim to exceptional demand.