COVID-19 - #03
MECALAC TEAM MEMBER COMMUNICATION
Dear Colleagues
We hope that you and your families are all well.
In this 3rd newsletter you will see below an information update for each of the companies in the Group:
Groupe Mecalac:
The Group continues to actively monitor the situation. Several scenarios have been considered for recovery after the crisis and the prospects for 2020. These hypotheses were presented to our Board on 9th April via video conference. We have applied for the relevant government grants available for business from the French state and have taken out several loans to cover the significant cash requirements over the coming months. We are grateful for the help and support of our financial partners who are assisting us throughout this crisis.
Mecalac France and Mecalac Hydromo:
Work at Mecalac France and Mecalac Hydromo remains almost entirely stopped apart from a minimum spares service for our customers. The majority of us have therefore remained confined to our homes either on layoff or working remotely and we hope that everyone is in good health.
With the help of the health and safety committee, the CSE and the workplace doctor, we have been able to establish the appropriate safety measures to adopt to allow some re-start of production activity from Tuesday 14 April. We are now ready with all the necessary safety measures and we have in particular received all the masks required to equip the workforce involved. The relevant team members affected by this re-start have been contacted by their manager. During this phase of partial very gradual re-start, and despite the fact that all the measures are in place to limit the risks to the maximum, it is essential that each one of us is extremely conscious of the danger and scrupulously respects all the rules in place as well as the wearing for personal protective equipment.
Our customers are also gradually re-starting their businesses and many are contacting us to check that we will be able to fulfill orders on time.
Mecalac Construction Equipment UK:
We have continued to maintain a reduced Aftersales service to our customers as well as some rework and related shipping activities.
We have made good progress with the rework activities, shipping and invoicing. These activities will continue on BHL until April 16th.
The health and safety of our team members remains our key priority, to this end, a small team are re-designing our 2-man operated stations at our assembly lines to ensure the 2-metre distance rule to prepare for future operations. This re-design was completed by the end of last week for Backhoe and will be completed for Dumper the week after Easter.
For BHL, we are currently planning to re-start the assembly line at a lower rate on 20 April. For DMP, it should be on 4 May.
Rest assured we are working extremely hard with the Coronavirus committee to find the best solutions in response to this global challenge and we do very much appreciate the support from all of our team members during this time.
Mecalac Baumaschinen:
To date none of our employees have contracted Covid-19. This fortunate situation has also been helped by the discipline of all team members, who are vigilant so that we keep the risk of infection as low as possible by respecting the social distancing rules. The management and the works council, as a precautionary measure, have established a work agreement for part-time working.
In the near future, we will be facing a situation of shortages for several parts. The lockdown in Italy in particular, has had a large impact on Mecalac Baumaschinen. Logistics and Purchasing are attempting to reduce the bottleneck effects to the minimum.
The last AX machines are on line. The line has been stopped provisionally due to a shortage of plastic fuel tanks, which are currently unavailable. At present there are no reliable forecasts regarding delivery of these missing parts.
The AS line is continuing to produce at least until the end of April. It is expected however, that there will be some missing parts.
Mecalac Ahlmann Service:
Every team member has taken two weeks’ annual leave during this difficult period. Several German dealers have closed for the two weeks over Easter.
In the German market business remains strong in the rental and aftersales sectors. Certain large construction sites have stopped work but the majority are continuing. On the other hand investment projects have almost all been stopped.
Mecalac Turkey:
During week 15, a third of the Mecalac Turkey team have continued production.
The 6MCR line continues to operate. The team continues to produce components mainly at the moment for Mecalac Baumaschinen. If the Turkish government does not announce any further restrictions, the team will continue to produce components at lower rates for Mecalac France for the months from April to June.
Mecalac Group Services:
The employees of this business entity are working from home. They continue to provide the necessary support to the factories.
Partial lay-off has been extended to further team members at this company.
Mecalac IDF:
Mecalac IDF is still operating under the restrictions. The sales team are working from home ensuring commercial cover.
MIDF is maintaining a service for the sale of spare parts, as well as for some machine repair work.
It should be noted that construction work around the greater Paris area is re-starting and that large national customers are also preparing to re-open construction sites.
Mecalac Italie:
Still very little activity in Italy. Some projects are still under discussion. Robert and Iléana are working from home and are in good health.
Mecalac Polska:
All the team are in very good health, and that’s the main thing.
Despite the public restrictions and national quarantine there remains some activity in Poland.
We have had a good month for invoicing in March, for new machines, sale of spare parts and service. The month of April has also started with a good level of work.
Mecalac North America:
MNA has managed to continue to operate in spite of the lockdown of the State of Massachusetts. A reduced team is looking after spare parts, stock replenishment and carrying out PDI checks on machines and transport. The remainder of the team are working from home.
At the moment we’re maintaining contact with the prospects established at Conexpo. We almost met our ambitious after show targets, even though the last day was cancelled.
We have signed two new dealers : Wood's CRW in Carlisle PA and Hall Equipment in Pontoon Beach IL, and numerous others should be joining our distribution network over the coming months.
Finally, MNA and the Group marketing team are working on a new initiative aimed at creating product training by webinar.
Conclusion:
This exceptional situation will necessitate that we cancel or delay some projects and investment, as well as limiting expenditure to the maximum.
We’re aware that great efforts will be necessary to get through this difficult period. It’s vital that all of the teams contribute to this and we thank you for this in advance.
Best wishes to you all,
The Management Team