Impact of coronavirus
ROTO is experiencing the effects of the coronavirus in all countries where it operates. Fortunately, there were limited health consequences for the employees and their loved ones. Nevertheless, the covid measures have a major impact on freedom of movement and on how we can work together. ROTO closely monitors and complies with government policies and guidelines of the various countries where it operates, although these sometimes can be challenging for production locations. Measures have been taken, protective equipment is made available, external visits are kept to a minimum and digital meetings have become a matter of course. The health and safety of all ROTO stakeholders is the highest priority.
“ Our priority is the health and safety of our employees and their loved ones.
The government measures have a strong impact on the economic situation. ROTO also notices this and has, where possible, claimed state aid. Both the government contribution in Poland and the NOW contribution for two Dutch companies are accounted for as other revenues.
The risks for ROTO focus on the following aspects:
As a result of government measures or illness of the employees, production locations may be forced to cut back significantly or cease production. For the time being, governments are concentrating on partial wage compensation to limit damage suffered in the event of a larger decrease in revenue. The schemes vary from country to country and are being reconsidered by governments period by period. ROTO has invoked the schemes offered and will continue to do so insofar as it is eligible. It is expected that as long as the Dutch government has announced restrictive lockdown measures, it will also continue its support schemes. This is important because ROTO achieves almost half of its revenue in the Netherlands.
ROTO actively communicates with its employees about the measures taken and the guidelines and protocols to which the employees must adhere. This ensures clarity and peace of mind among the employees.
Despite the restrictive measurements, the incoming flow of goods has not stagnated so far, with some exceptions due to measures taken by government authorities or supply problems at suppliers. Stocks of steel, strip steel, zinc ashes and zinc were generally sufficient to maintain trading and production. However, there are no guarantees for the future: in the event of a downturn in, or even cessation of, regular deliveries the operations of ROTO companies will be affected or disrupted.