Impact of the Coronavirus Outbreak and Countermeasures - Asia Pacific

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Impact of the Coronavirus Outbreak and Countermeasures

Tags: COVID-19

Tokyo, February 27, 2020 – SATO issues the following statement on the impact caused by the coronavirus disease 2019 (COVID-19) outbreak which originated in Wuhan, China and the measures we are taking to mitigate further risk.

1. Impact of our product supply chain

Printers and hardware products

SATO manufactures its hardware products in Malaysia and Vietnam, and there is a risk of that parts procurement from China could be delayed. We are closely monitoring the situation and taking measures as appropriate to mitigate any risk.

Labels and supplies

For products manufactured in China and products procured from China for base materials, packaging materials and raw materials, we are closely monitoring the impact of possible delays in delivery.

Products procured from third parties

Production and delivery of some products purchased from third parties has been delayed. To date, there has been no delay in shipping to customers.

We are monitoring the magnitude of these impacts and will promptly report on relevant issues.

2. Operations of group companies in China

At our China group companies, employees are working from home and conducting sales in a limited manner. The resumption date for each office has not been determined, but we will closely monitor the situation based on administrative notices and local information.

SATO offices in China currently operating on a limited basis:

SATO Shanghai Co., Ltd.
Locations: Shanghai, Shenzhen, Beijing, Dalian, Guangzhou, Wuxi
Nature of business: Sales of hardware and supply products

Argox Information Co., Ltd.
Locations: Shanghai, Beijing, Guangzhou
Nature of business: Sales of hardware and supply products

Wuxi Songxing Electronic Components Co. Ltd.
Location: Wuxi (Jiangsu province)
Nature of business: Manufacture of hardware and supply products

3. Measures and support for employees in China

The health and safety of employees and their families is our first priority, and SATO employees in China are being asked to stay in their homes throughout this outbreak as a rule. In addition, the company is providing masks and non-contact thermometers for several months to support these employees and their families.

4. Group employees outside of China

Based on the Overseas Travel Safety Information from Japan’s Ministry of Foreign Affairs, all SATO Group employees are prohibited from travel to China as a general rule. In the future, we will consider further measures to prevent the spread of infection to countries and regions beyond China.

5. Assistance

SATO Shanghai Co., Ltd. has provided 66,000 patient ID wristbands free of charge to medical institutions in China. In addition, SATO Holdings Corporation has also made a contribution of 200,000 yuan (approx. 3 million yen) to the Shanghai Charity Foundation to help prevent the spread of infection in China.

We sincerely wish for the quick recovery of those affected and the end of the outbreak as soon as possible.

About SATO

SATO (TOKYO:6287) is a global auto-ID solutions provider for leading manufacturing, logistics, retail, food & beverage, health care companies. With a bottom-up understanding of on-site use applications, SATO tags items with identifiers to improve supply chain flows of tomorrow by solving managerial and operational challenges of today. An industry pioneer with 79 years of expertise and a 5,000+ strong global workforce in 27 countries, SATO engineers solutions to streamline operations, boost accuracy, support sustainability initiatives, provide assurance and emotional connections, extending value all the way to the consumer. For the fiscal year ending March 31, 2019, it reported revenues of JPY 116,179 million (USD 1.05 billion*). More information about SATO can be found at www.satoworldwide.com, linkedin and twitter.

*Conversion is based on an average exchange rate of 1 US Dollar = 110.92 Japanese Yen

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For media inquiries:

Kevin Leidheiser

Public Relations

SATO Holdings Corporation

[email protected]

Tel: +81-3-5745-3412

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