Dear valued partners,

During this ongoing pandemic, our highest priorities were and are to assure continuous deliveries to our customers and of course the health of our employees. Due to our various immediate actions, we were able to continue production during the acute period.

We have searched for alternative suppliers globally to qualify them and reduce risk in our supply chain. We had to accept higher prices in Europe. We enlarged our supplier portfolio and even integrated some critical suppliers into our own network. This enables us to control the costs and ensure deliveries. In many cases we paid for extra transportation (e.g. air cargo, special transports from locked-down areas) to keep on-time deliveries.

We invested in security measures by making sure we have enough protective masks, disinfectant fluid, etc. Our production teams are divided into strict shifts with no overlapping. Extra disinfection of the workplaces helps to avoid production stops. Efficiency in production decreased and additional labour cost was generated due to these re-organizations.

Mostly independent from the pandemic, labour costs for example, are increasing at all FAULHABER production sites. Electronic components, turned parts, magnets and all other major parts of our products, but also raw material like copper, are only available at higher prices.