Medical suppliers prepare for coronavirus

As US officials warned of the spread of the coronavirus outbreak in the U.S., suppliers to the medical and health care industries said they were ramping up production.

The U.S. Centers for Disease Control and Prevention said in a news briefing Feb. 25 that it is is preparing for pandemic response plans if needed.

Dr. Nancy Messonnier, director of the National Center for Immunization and Respiratory Disease at the CDC said health officials don’t know how large the spread of the disease to the U.S. might be, but that “disruption to everyday life may be severe.”

“It’s not so much of a question of if this will happen in this country any more but a question of when this will happen, and how many people in this country will have severe illness,” she said. “We are asking the American public to prepare for the expectation that this might be bad.” she said.

Plastics suppliers such as PolymaxTPE of Waukegon, Ill., and a manufacturer of thermoplastic elastomers, had already said its sister company in China was producing specialized TPE used in aspirators.

Berry Global Group Inc. had already ramped up production of nonwoven health care products in response to the initial outbreak in Wuhan, China,  “prioritizing production of nonwoven health care products.”

“With the recent outbreak of the coronavirus in China, we continue to stay abreast of challenges which may affect our supply chain,” Amy Waterman, a spokesperson for Berry Global told Plastics News in an emailed statement Feb. 25. “We will continue to communicate with customers and suppliers to identify and resolve any delays during this time.”

Flexible packaging specialist Sealed Air Corp. said it is implementing precautionary measures to ensure the well being of  its employees, including suspending business travel to and from affected countries.

“Sealed Air has business continuity plans in place to minimize potential impacts on its operations and customer service,” Pam Davis, a spokesperson for Sealed Air said in an emailed statement to Plastics News. “The company will continue to monitor the situation and assess the need for further measures based on recommendations by relevant authorities and business needs.

“At Sealed Air, the safety and welfare of employees and their families is our top priority. The company is closely monitoring the development of the COVID-19 outbreak,” the statement said.

Italy's plastics industry has been seeing an impact of the coronavirus beyond a rise in cases in the Milan region.

Amaplast, the Italian plastics and rubber processing machinery and molds manufacturers’ association, said companies have seen delays in shipments and delivery of machinery because of the halt in production in China.

“In addition, some companies that for a number of years have been operating manufacturing units or trading offices in China, have been forced to temporarily close their premises, due to the block on business activities, and also as a result of the interruption of the components supply chain and distribution channels,” Amaplast said in a news release Feb. 24. “However, at present there are reports of a progressive, though slow, return to normal operations, with the reopening of company premises.”

China is an important export market for Italian manufacturers of machinery, equipment and molds for plastics and rubber processing and delays in new orders and investment decisions could cause financial stress for some companies, Amaplast said in the release. ​​​​​

Organizers of JEC World said Feb. 24 that its global event for composites makers will take place as scheduled for March 3-5 in Paris.

“The safety and health of our exhibitors, visitors, partners and staff is our number one priority,” JEC World said in a news release. “Regarding the outbreak of the coronavirus COVID19, JEC Group is carefully following the World Health Organization’s recommendations, [European Union] and French Health Authorities recommendations and protocols.” ​​​​

As the coronavirus outbreak that began in China spreads globally, plastics manufacturers on multiple continents are also responding and preparing for more impacts on the industry from a virus now infecting more than 79,000 people globally, and killing over 2,600.

Italy now has the highest number of reported cases of the virus outside of Asia, at 200, with five people dead. South Korea has the biggest outbreak outside of China, with more than 800 reported cases.

Rodolfo Comerio srl, a plastics and rubber machinery company, is limiting access to its base site near Milan.

“In light of the current health situation in Italy,” the company said in a Feb. 24 news release, “ … we are acting with the local health authorities so that all our partners are guaranteed the maximum security and the necessary information to avoid any risk of contagion from Corona Virus.

“Outbreaks have not been recorded in our area, the activities in Rodolfo Comerio are proceeding regularly and safety protocols prohibiting non-authorized personnel from entering the company have been implemented,” the release said.

MIDO, the annual global eyewear industry tradeshow held in Milan announced its board decided to postpone its 2020 50-year anniversary event scheduled for Feb. 29 through March 2.

“We took this decision out of respect for the current alarming situation and for our exhibitors and visitors,”  Giovanni Vitaloni, President of MIDO said in a news release Feb. 22. “We are aware that this decision will require industry professionals, exhibitors, buyers, press members, opticians and everyone working for MIDO, including our staff, to re-schedule their attendance, with a significant impact on all internal organizations. … but we cannot honestly think of celebrating our 50 years when the world - and our country now in particular - is experiencing such an international crisis.”

MIDO’s organizers postponed the event to a date “still to be decided,” between the end of May to mid-June, the release said.

On Feb. 24, the Dow Jones industrial average lost nearly 1,000 points, or 3.3 percent, while the S&P 500 also fell 3.3 percent and the Nasdaq fell 3.7 percent.

And beyond the stock market, petrochemical demand could fall by between 2.4 million and 4 million metric tons because of the virus, according to Bill Hyde, senior director of olefins and elastomers at Houston-based analytics firm IHS Markit.

The overall Chinese economy will be significantly impacted by the virus, Hyde said.

“Our best estimate right now is that Chinese GDP growth will be reduced by around 0.4 percent this year to about 5.4 percent,” he said. “A more aggressive scenario could result in GDP growth below 5 percent in 2020.”

 The virus' impact on transportation in China has caused negative growth in global crude oil demand in the first quarter of 2020, according to Hyde.

Patrick Dempsey, president and CEO of Connecticut-based Barnes Group Inc., said in its fourth quarter conference call Feb. 21 that Asia accounts for about 10 percent of Barnes’ total sales, mainly from molds and automotive hot runners, and special nitrogen gas springs.

“Our primary concern remains with the safety and welfare of our associates around the world,” he said.

Dempsey said Barnes temporarily suspended employee travel in and out of China. Plants remain closed after the extended Chinese New Year holiday, but are “slowly coming back online.”

“At this point we are monitoring the situation closely,” he said.

The industry is also responding to a growing need for plastic medical supplies for containment and treatment of the coronavirus.

Nantong Polymax, a sister company of PolymaxTPE of Waukegon, Ill., and a manufacturer of thermoplastic elastomers located about 500 miles from the center of the outbreak in Wuhan, China, said in a Feb. 24 release that the Chinese government requested it remain open to produce a critical component called P3838, which is molded into diaphragms needed for sputum aspirators, suction machines used to clear out a patients’ airways.

“Nantong Polymax has been allowed to keep a portion of their facility open, operating with a small shift of employees to run limited production,” the release said.

“Understanding the severity of the situation, not only in China but across the world, we are happy to be able to do our part to fight the virus,” Tom Castile, vice president of sales at PolymaxTPE said in a statement. ​​​​​

Miles Moore of Rubber & Plastics News contributed to this report.