AIRBOSS PROVIDES COVID-19 BUSINESS UPDATE
NEWMARKET, Ontario, March 19, 2020 (GLOBE NEWSWIRE) -- AirBoss of America Corp. (TSX:BOS), today announced an update on its business operations in response to the evolving COVID-19 pandemic. AirBoss had previously taken a number of steps to ensure the health and safety of its employees and customers including: ramping up cleaning and hygiene procedures at all facilities across the organization; cancelling all non-essential travel; encouraging employees to work from home where possible; and taking appropriate precautions with visitors to its facilities. In light of the recent announcements by North America’s “Big Three” automakers to temporarily suspend or slow down production until at least March 30, 2020, AirBoss may need to similarly suspend production of automotive components at its Engineered Products business in Auburn Hills, MI through the same period. Operations at AirBoss’ other facilities in North America remain relatively unaffected at this time.
“The long-term health and well-being of our employees, customers, their families and the broader communities in which we operate is our primary concern,” said Mr. Chris Bitsakakis, President and COO of AirBoss. “We continue to closely monitor the situation, taking into account the latest advice from public health officials, as well as the specific and evolving needs of our customers. We believe AirBoss’ long-standing relationships with key customers, reputation for quality compounds and products, and solid balance sheet position us well to successfully navigate this global threat in partnership with each of our stakeholders.”
In connection with any suspension or slow-down of automotive parts production at Auburn Hills, MI, the Company will review and implement all appropriate cost containment measures as it attempts to minimize the effects of net sale losses, which are currently estimated to be up to US$2.5 million per week in the event of a full closure. The Company expects to continue operating all functions required to support its customers and ultimately ensure a smooth return to full production. AirBoss Engineered Products is also working to certify the Auburn Hills facility to produce certain molded defense products to support a recently awarded AirBoss Defense Group contract, as increased production of defense products could offset reduced net sales from the automotive industry at this location.