ADKOMunity I, January 2021
It is not easy to picture the past year. We all were confronted with situation that could neither be foreseen nor planned in any way. That is why it is particularly important to us to say thank you very much, because you remained loyal to us. The year that has just passed has been an extraordinary one for everyone involved.
Unfortunately, 2021 did not start with better prospects and market conditions and is currently more of a “2020 Reloaded”. At the beginning of the year there are other imponderables to report that we have to share with you on top of the points already addressed in November 2020. Nevertheless, we look ahead positively and are confident that we can work with you to master the imponderables and do away with them.
The comeback of the pandemic in parts of China
In the Chinese provinces of Hebei and Liaoning (located in northeast China) the pandemic has flared up again in recent days. Through close contacts to our partners within the affected regions, we learned about the fact that both provinces have been locked down for days and that neither production nor trade in goods can take place there.
Some important and well-known production facilities of partner companies as well as some sub-suppliers are affected by these new restrictions. Communication with our contact partners continues to work, but reliable information on production and delivery status is difficult to obtain. From today‘s perspective, the current restrictions will nevertheless lead to delays in production and logistics. Up to date, no one can predict how long the conditions will apply in the aforementioned provinces. It is to be hoped that they can be quickly lifted by the provincial governments.
Super disaster at Japanese glass manufacturer NEG
A serious incident was reported concerning the Japanese glass manufacturer NEG in mid-December. Meanwhile, the real scope of this message is becoming increasingly clear. NEG is one of the most important glass manufacturers, producing around 16% of the world market demand for panel glass at its Takatsuki and Notogawa locations.
The production lines at both locations were damaged due to a power failure lasting several hours. The Gen 6 and Gen 8.5 plants are no longer in progress in the long term. Both of them are operated centrally from a melting furnace to production lines. As the glass mass on the feeders cooled down, all production lines in the two plants are out of order and have to be repaired or rebuilt by the middle of the year. The calculated failure of glass panels is currently projected at around 4 million m². The resultant shortage of panel glass for TV and display production will lead to a further delay of raw materials for TFT and LCD manufacturers.
The hiob messages that somehow never want to tear off spur us on at ADKOM, in very close coordination with our partners, to keep the effects for our customers as low as possible. However, we will not be able to do it entirely, and it is only possible in mutual consultation. That is why we would like to point out „expressis verbis“ how extremely important it is to schedule your requirements together with us as early as possible. This is the only way to prevent the supply chain from breaking off at the earliest. If you have any detailed questions, please contact us, because we are always happy to advise you.