The Managing Board and employees of paragon AG are following the suffering of the Japanese people with great empathy. No significant impact on paragon’s production, however, is expected. “We were able to ascertain that only a single component from Japan is affected by the catastrophe; a substitute is available from production in China”, Chairman of the Board, Klaus Dieter Frers, emphasized.
paragon’s employees and production sites are not directly affected by the catastrophic situation. Nevertheless, paragon has set up a task force with employees from all divisions of the Company. The objective of the task force has been to determine whether and to what extent paragon may be affected by potential supply problems in Japan. It appears, following a thorough review of the supply chain in close dialogue with all suppliers, that at present there are no direct effects.
In the case of the single component that is currently affected, paragon’s warehouse inventory will last for several weeks. Furthermore, an equivalent product is available from China as substitute. “This allows us to guarantee supply to our customers”, Frers points out.
Until now paragon has not received any communication from car manufacturers that production stops are anticipated due to the situation in Japan. “Currently, we are expecting only temporary difficulties, if any, which we can respond to with great flexibility thanks to our restructuring over the past two years”, Frers explained. At present, the Managing Board is assuming that potential influence from Japan will not be detrimental to the plan for fiscal 2011.