Bufab Group Management reduces own salaries | FASTENER EURASIA MAGAZINE
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Bufab Group: Limited effects of corona virus so far, but increased impact expected from April

The corona virus and the extensive countermeasures implemented by local authorities throughout Europe, North America and Asia will start to impact the Bufab Group in the second quarter of 2020.

Operations stable and supply chain working well. Increased focus on health, deliveries, and lower costs. Management reduces own salaries.

Bufab's priorities in this situation are to (1) Protect Health, (2) Protect Customers and (3) Protect Bufab.

In Asia, the impact was seen already during January and February. However, despite strict government regulations in China and Singapore as well as throughout Southeast Asia, Bufab was able to fulfil our priorities in Asia. That experience is invaluable as the spread of the disease and the countermeasures accelerate on new continents.

In Europe, some customers have recently announced factory closures. These mainly relate to supply chain disruptions and illness among staff, and mainly concern customers in the automotive industry. Bufab has a very diversified customer base across many industries, most of which are as yet less affected than the automotive industry.  So far, closures are expected to end mid-April, but changes in the external situation may of course influence this timetable.

In North America, some states have implemented lock-downs, for instance California where Bufab has a large subsidiary. This has impacted sales and operations starting this week. However, we are also seeing how customers are restarting essential operations under various exemptions. Bufab is operating, invoicing, and keeping our customers supplied in all branches in North America, but with reduced staff and capacity.

In summary, we are expecting an impact on sales and orders at least during April, and it is currently difficult to say how long it will last. However, Bufab’s operations are stable, we are getting deliveries from suppliers worldwide, and are able to deliver to customers in all countries.

In order to protect Bufab, we are focusing on keeping our customers, keeping our team, keeping healthy financial results, and keeping our values intact. Action is being taken in all subsidiaries impacted. Most subsidiaries are already implementing short-time work schemes according to the rules in each country. In this, we are helped by the various government schemes now being put in place. This will make it possible to reduce cost to meet a potential fall in demand. As communicated earlier, we are also accelerating existing cost savings programs, and the Board has decided to withdraw the earlier dividend proposal.

Bufab’s CEO and Executive Management Team have implemented a voluntary reduction of fixed salary by 10% while these actions are in place. Many subsidiary managing directors and other senior managers have followed this example.

"This is a difficult period for everyone. Bufab’s primary concern is keeping our staff and partners healthy and safe. We will then focus on continued uninterrupted supply to all customers worldwide. Naturally, we also have to take sometimes tough measures to reduce cost. It is very encouraging to see how the whole Bufab team contributes to these priorities. I’d like to take this opportunity to thank all team members for their excellent work and dedication in these tough times,” says Jörgen Rosengren, Bufab’s President and CEO.

Bufab is closely monitoring the development and continuously adjusting measures in accordance with the changing situation.