Hexstone, the UK’s largest fastener, fixing and associated product wholesaler, has confirmed to Torque that it is closely watching the developing situation in China, which has seen extended factory shutdowns to prevent the spread of coronavirus.
Precautionary measures by Chinese authorities have delayed the reopening of Chinese factories by an extra week after the Lunar New Year break.
Hexstone CEO Ian Doherty told Torque: “We know many of the factories in Shanghai have been told they can’t reopen until 10 Feb. That is not a huge concern to us because we carry five to six months stock. It might affect some products, but the real challenge is if the shutdown is further extended.”
Doherty added that the workforce post-shutdown could pose a challenge too.
“One of the concerns would be the return of workers. Historically this can be a challenge after the Chinese New Year, so that’s another potential for disruption.
“Hexstone is aware of the problem. Are we panicking? No. Are we looking at options for alternative sourcing? Yes. Have we ‘pressed the button’ yet? No.
“We have got alternative sources that will protect us, but ultimately we are protected with the depth of stock we carry anyway. We will continue to monitor the situation.”
Doherty added that Hexstone’s planned visits to factories in China have been postponed until later in the year.
Read expert opinion on the supply chain implications of the coronavirus factory shutdown here. Find further comment on the shutdowns from TIMco and Goebel Fasteners here.
Torque will have more from Hexstone in the April 2020 print magazine. Don't get the magazine? Apply for a free subscription today.
