Companies scrambling to get stock amid Chinese supplier shutdown

Wednesday, 4 March 2020, 10:27 am
Article: RNZ

One of the main suppliers of protective gear for doctors and nurses is worried stocks could run out here if Chinese factories in Wuhan don't re-open soon.

The epicentre of the coronavirus is also the region where companies who produce most of the world's supply of overalls, aprons, shoes and gloves reside.

Jackson Allison Medical, the company with the national contract for supplying personal protective equipment to the district health boards, says it has only nine weeks of stock left.

General manager, John Bell, said nearly all the products were made in Wuhan, which had been shut down for about a month because of the coronavirus.

He is hoping workers will be back on the job soon to avoid problems.

"Good news is it looks like they're going to start back in production on Monday, Tuesday next week. If that is the case we'll be fine we won't run out of stock," he said.

"But if it's much longer before they go back to work then there's going to be problems bringing product out of China.

"At the moment, we're ok. But if something happens in the Wuhan production line and the workers don't go back to work by next week things will start getting a bit dicey."

Bell said his company has stopped taking on any new customers and was only filling existing contracts with the DHBs.

Fisher and Paykel Healthcare said it in statement it had faced a period where some of its suppliers had run out, but it was now getting parts for its products from other countries and had increased production.

The company makes ventilators and has had trouble sourcing the Chinese-made parts for respiratory humidifiers, which help control the air temperature for patients who can't breathe on their own.

Read more about the Covid-19 coronavirus:

• Covid-19: What it is and how to protect yourself
• Scientific hand-washing advice to avoid infection
• New Zealand confirms case of Covid-19 coronavirus
• Coronavirus patient 'never really felt unwell'
• More Covid-19 news

Last week it upped its profit forecasts for the third time this year due to the surge in demand for respirators to treat coronavirus patients.

Another medical supply company Apex reported it was also feeling the knock-on effects of the shutdowns across China.

Chief executive Neale Gover said: "We received an email from one of our suppliers that they did have a manufacturing plant that is opened and operating at 50 percent, but they said some of their suppliers providing parts are now closed and there'd be delays in shipping products."

The Medical Technology Association, which represents many of the country's suppliers, said members had been scrambling to get stock from outside the Chinese market.

Spokesperson Faye Summers said: "I feel quiet comfortable with what stocks we need, for the immediacy of anything.

"It depends on how long it goes on for and how we can source product from around the world and the supply chains returning to normality and manufacturing getting up-and-running again. That's going to be crucial in the months ahead."

Summers said suppliers were required to stock pile some items as part of the pandemic plan.

© Scoop Media

RNZ

New Zealand's public broadcaster, providing comprehensive NZ news and current affairs, specialist audio features and documentaries.

Radio New Zealand is a Crown entity established under the Radio New Zealand Act 1995. Radio New Zealand News are vital elements in our programming, providing impartial news and information to New Zealanders every day. Radio New Zealand (RNZ) provides listeners with exciting and independent radio programmes in accordance with the Radio New Zealand Charter.

Contact RNZ

• Website - www.radionz.co.nz
• Twitter - @rnz_news
• Facebook
• Link - Contact RNZ