Axalta Reports COVID-19 PPE Donations
Last month, global liquid and powder coatings supplier Axalta issued a press release regarding its personal protective equipment and hand sanitizer donations during the COVID-19 pandemic.
The company also changed its 2020 Annual General Meeting of Members to a virtual-only format, in response to public health and travel safety concerns involved with the health crisis. The meeting took place on April 29.
COVID-19 Relief Efforts
"Axalta is committed to worldwide efforts to support the safety, health, and well-being of hospital professionals, first responders, and our employees," said Robert Bryant, Axalta's Chief Executive Officer. "Our entire global Axalta family is pulling together to use our collective energy and resources to help fight coronavirus in the communities where we live, work, and raise our families."
"We are putting our manufacturing might and supply inventories to work in order to offer products that will make a difference where they are needed most—whether that be in hospital rooms, on ambulances, or on the manufacturing floor," Bryant added.
According to the company, it has produced thousands of gallons of hand sanitizer at its plants in Front Royal, Virginia; Mount Clemens, Michigan; Tlalnepantla, Mexico; Guarulhos, Brazil; and Wuppertal, Germany. The sanitizer reportedly meets World Health Organization standards and is being donated to local hospitals and first responders.
Axalta is also implementing the product as its plants to ensure the safety of its employees and their families.
The company also reports that it has made PPE donations including its N95 inventory of facemasks, coveralls, closed hoods and protective hoods, among others, to hospitals in United States, France, Belgium and Germany.
Additionally, Axalta has also donated more than 5,000 seat covers—typically used in body shops—to local hospitals reporting a shortage on PPE. According to the release, medical professionals are able to use the seat covers in their own cars as to reduce the risk of transmitting coronavirus.
More from Axalta
Back in February, the company also received a special permit to resume work (after all employee safety requirements were met) at its Changchun, China, plant to coat a fleet of ambulances that were in high demand at the peak of the outbreak in the country.
In March, Axalta issued a press release regarding the impacts COVID-19 had on its business and the actions it plans to take in order to protect it communities, employees, customers and shareholders.
Two of the main tasks taken in response to the virus, Axalta reports, will be to maintain a strong balance sheet and liquidity profile, in addition to withdrawing its 2020 Financial Guidance given inherent uncertainty in the outlook for customer demand.
When the demand becomes more visible, Axalta management intends to provide updated guidance and is working with suppliers to identify and mitigate potential risk and inventory. However, no significant disruptions have been reported at this time.
The press release also reports that management has already begun planning and addressing near-term impacts on the demand decline in specific portions of Axalta’s business. Additionally, the company plans to focus on dynamically adjusting cost structures as needed, including initial actions required to reduce discretionary spending.
Free cash flow is expected to maximize and will include modifying previous plans for capital spending as well as reducing working capital intensity across the business.
Bryant concluded, "We will continue to look for opportunities to leverage our capabilities to the fullest and remain steadfast in our goal of serving our communities and the true heroes on the front lines of this fight."
View all of PaintSquare Press' coverage on COVID-19, here.
