The winning challenge of DEUTZ to the Coronavirus
DEUTZ and Coronavirus, maybe we can say it’s time for game over for the virus. Following the release from Cologne (here the financial data): “The Deutz plants in Germany will be progressively resuming production from Monday, April 20, 2020. The company had shut down large parts of its European production sites on April 1 due to the coronavirus crisis. Operations will now resume with extended safety measures to protect the health of the workforce. The Deutz site in Zafra, Spain, already resumed production on April 14.
As Dr. Frank Hiller, Chairman of the DEUTZ Ag Board of Management, explains: «We are resuming production to meet customer demand. The health of our employees remains the focus of our efforts, and we are keeping a close eye on the situation in case we have to react to developments at short notice».”
Back at the end of March
Let us rewind the tape to the release at the end of March, when the coronovirus had hit the whole of Europe and Deutz had to deal with the effects of the lockdown.
“DEUTZ will be shutting down large parts of its production in Europe (Cologne, Ulm, Herschbach, Zafra), at first from April 1 through April 17, 2020. Many of the DEUTZ Group’s customers have already closed down their production or are planning to do so in the very near future. This action is also being taken in order to protect our employees. Furthermore, following consultation with employee representatives, the Company will apply for short-time working. Against this backdrop and amidst the rapidly developing coronavirus crisis, DEUTZ is withdrawing its guidance for 2020. As it is not yet possible to assess the extent of the impact on business, it is not currently possible to update the guidance. DEUTZ has already taken precautionary measures to ensure that it has sufficient liquidity with regard to possible stress scenarios due to the coronavirus pandemic.
Frank Hiller explains: «The coronavirus crisis is forcing us to take these measures. So far, we have not had a confirmed case of coronavirus at our DEUTZ AG sites, and naturally we want it to remain that way. The health of our employees is the focus of our efforts. In addition, the precautionary measures to ensure compliance with minimum distances between employees are making efficient production currently impossible in the assembly area, which is why we have taken the decision to temporarily close down large parts of our production».”