Corona Virus Impact.pdf

The Corona Virus outbreak in China will have far-reaching effects on the domestic stock market, world economic markets, imports, production, and exports, seriously impacting shipping and fuel prices. Many workers remain at home, and those who returned are often quarantined, affecting production. The Chinese authorities extended the New Year holidays and advised against domestic travel, with local governments announcing factory closures until at least February 24th. LC Packaging sources some products from China, including Raschel bags, monofilament bags, fleece, shade cloth, and BOPP WPP bags, and is assessing the impact on production. There will be no impact on FIBC customers, and plenty of stock is available for corrugate-board demand. The Agri side of the business will be affected by a slower startup period, and global long-term impacts include shortages of reefer containers, congestion in Chinese ports, and shipment delays. Strict hygiene protocols are being imposed on vessels, and potential delays to vessel schedules may occur. The situation is being closely monitored, and updates will be provided.