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Xebec Provides Update on Coronavirus Impact on Global Operations
Xebec Provides Update on Coronavirus Impact on Global Operations.
About this update from Xebec Adsorption Inc.
[{"type":"text","content":"\n MONTREAL, March 16, 2020 (GLOBE NEWSWIRE) -- Xebec Adsorption Inc. (TSXV: XBC) (“Xebec”), a global provider of clean energy solutions is pleased to provide an update on the novel coronavirus (COVID-19) impact on Xebec’s global operations. Xebec currently has operations and manufacturing capacity in three countries, which include: China, Italy, and Canada. Xebec’s manufacturing operations in Shanghai, China (“Xebec Shanghai”) were previously affected by COVID-19 and were shut down for three additional weeks after the normal two-week Chinese New Year holiday. The facility has since restarted and is now fully operational. Over this period, the rest of the operations were working remotely to continue progress on designs of various customer contracts. As a result, Xebec Shanghai may experience a moderate impact on Q1/20 revenues and earnings but does not expect a material impact on full-year 2020. One of Xebec Shanghai’s deliveries (a hydrogen purification unit) since the factory restarted in late February 2020https://www.globenewswire.com/NewsRoom/AttachmentNg/f5251bb0-e289-4124-ba19-cfaac25a70c4 Our operations in Lombardy, Italy were recently impacted by the mandated lockdown of the country. Although Xebec does not have full manufacturing capabilities in Italy, projects are mostly outsourced into the supply chain. We are now starting to see delays from suppliers based in Northern Italy because of the transportation shutdown. There are two ongoing projects in Italy that are under construction, one located in Sicily and the other in Genova. Work on both projects is now halted and will restart after April 3rd at the earliest. Similar to Xebec Shanghai, Xebec’s operations in Italy may experience moderate impacts on Q1 and Q2 2020 revenues and earnings, but we do not expect a significant impact on full year numbers. Xebec’s ongoing delivery of an agri-food waste project in Sicily, Italyhttps://www.globenewswire.com/NewsRoom/AttachmentNg/85dc707b-b373-494b-83a8-417a1de658df Lastly, Xebec’s Canadian operations in Québec currently remain unaffected and we are operating close to capacity. Our schedule for North American deliveries remains the same and no impact has so far been experienced due to the coronavirus. We are working on a multitude of shipments for the North Ameri...