COVID-19: Outbreak to squeeze Toyo Ink's earnings

08:43 AM | March 13, 2020 | Kartik Kohli

Toyo Ink SC Holdings (Tokyo, Japan) says the coronavirus disease 2019 (COVID-19) outbreak will “negatively impact its results for the period and operations, with China bearing the brunt of the fallout at this stage.” The company operates 10 bases and employs a workforce of 2,000 in China. Like many manufacturers, it temporarily halted production in line with the Chinese government’s extension of the Lunar New Year holiday in the wake of the outbreak.

In response to an inquiry from CW, Toyo Ink says that as of early March, its production sites in China are operating at 80–100% capacity. While none of its workers in China have been infected by COVID-19, some employees have not been able to return to work as they are stranded in their respective hometowns due to China’s tight travel restrictions or are under home isolation, it says.

Many of the company’s customers in China are operating between 50% and 80% capacity as of early March, according to the company. Toyo Ink tells CW that it has been engaging in frequent communication with its customers “to help bring their operations back to normal.” It says it is closely managing its supply chain not only in China but also in the other parts of the world, and is working with suppliers to minimize any potential issues that may impact operations.

Besides China, operations in other regions are currently running as normal with minimal disruption, it tells CW. In Japan, the company has “established staggered shifts and restricted business trips and other social distancing practices,” it adds.