Pandemic Prevention 360
In response to the outbreak of the COVID-19 pandemic around the world, Walsin Lihwa set up a company-wide pandemic prevention and response center, initiated the "Business Continuity Management Plan for Pandemic Prevention", and formulated "pandemic prevention measures" in accordance with the government's pandemic prevention policy. The company organized a complete protection network for employee healthcare to ensure 360-degree protection for every employee.
A letter was sent to employees from the Chairman, Vice Chairman, and President to explain the company's response measures and to maintain a stable work morale.
Cooperation among employees to protect the health each other
During the epidemic period, the Head Office's Epidemic Prevention Command Center kept track of the epidemic situation and epidemic prevention materials at each plant, assisted in the deployment of epidemic prevention materials, and canceled large events and gatherings. During the period of severe pandemic, regional job rotations and some remote work were initiated to ensure the safety of employees and to maintain the company's operation.
In addition, the environmental safety and health, human resources, and plant affairs units at each plant in Taiwan also found out about the work and living needs of migrant workers, promoted pandemic prevention knowledge and measures, and provided pandemic prevention materials and various assistance as needed.
Supply chain management
Proactive pandemic management
The COVID-19 epidemic in 2020 caused a break in the supply chain of some industries. The Company has actively worked with our supply chain partners at the beginning of the epidemic to confirm the incoming and outgoing stocks of raw materials and to coordinate stocking and production. Under pre-contingency management, there was no significant impact on the incoming raw materials and production in 2020.
With regards to the Wire & Cable Business, domestic procurement of the Taiwan plants has not been affected by the pandemic; while for overseas procurement, the pandemic has affected the production of suppliers and we have suffered delays or failure to receive orders from suppliers. In the second half of 2020, there will be reduced shipping schedules and severe container shortages, which will result in unpredictable and delayed shipments. The Company's countermeasures of developing secondary sources of materials, notifying manufacturers for advance production, and arranging flights have resulted in no significant impact on the Company. In early 2020 Dongguan Walsin was subject to inter-provincial movement control of drivers and trucks. The Company used measures such as adjusting inventory, negotiating delayed delivery date, and applying for special traffic release permits to reduce the Company's production loss. By April 2020, we had gradually returned to normal and suffered no significant impact.
Supply Chain Pandemic Impact and Response
The main suppliers of Shanghai Walsin and Jiangying Walsin Steel Cable are located in Jiangxi, Zhejiang, and Shanghai regions, and they began work earlier than other regions in mainland China. According to past experience (Lunar New Year holiday factor and supplier holiday factor), they have prepared materials in advance, so the materials can meet the customers' production demand before the suppliers' normal delivery.
For the Stainless Steel Business, the Taiwan plants generally diversify risks on a regular basis. At the beginning of the epidemic, we actively checked with our overseas supply chain partners to confirm the import and consumption of raw materials. After the outbreak of the epidemic, we checked one by one the overseas factory personnel's work and production status, in order to ensure that the follow-up shipments can be unimpeded. For domestic suppliers, we confirmed that the supply chain is in stock to ensure that raw materials will not be out of stock and affect production. We prepared spare parts for important materials to increase the safe inventory stock quantity. As a result, the Company's stainless steel production has not been affected by the global shipping chaos since the second half of 2020. For the plants in mainland China, through coordination with suppliers, each plant has increased inventory measures and logistical support. The purchase of various raw materials for the plants in mainland China were not affected throughout the year.