Mahindra & Mahindra's component manufacturing arm, Mahindra CIE, has announced temporary suspension of operations at its manufacturing operations on the back of the coronavirus (Covid-19) impact.
Mahindra CIE, a multi-technology automotive components supplier and a subsidiary of the CIE Automotive group of Spain, says it has undertaken various proactive and preventive measures at all offices and manufacturing units of the company and its subsidiaries in India and Europe, to ensure employee safety and contain the spread of Covid 19.
It says these measures are in line with various guidelines issued by the relevant government authorities. In the past couple of days, various states in India, where its manufacturing plants are located, issued orders to all the entities within their respective jurisdictions to suspend all kind of manufacturing operations with immediate effect till further orders.
Accordingly, the company and its subsidiaries in India including Aurangabad Electricals have suspended operations at all the manufacturing units in India, except in Karnataka, till the restrictions are removed. The company says the Karnataka plant's operations will be suspended from March 25 till March 31, subject to review of rapidly changing circumstances.
In terms of international operations, Mahindra CIE says in Europe, in line with the Italian government's advisory, its subsidiary Metallcastello has suspended its operations until April 6. In Germany, on the back of reduction in demand due to the Coronavirus outbreak, its subsidiary Schoneweiss & Co will be shut for the next two weeks. The other two German subsidiaries, Gesenkschmiede Schneider and Falkenroth Umformtechnik will continue operations, but at a reduced output, during this period.
Lastly, CIE Galfor, and other Spanish subsidiaries will also stop operations for the next two weeks to adapt output to the new demand. In all the cases, sourcing to the customers has been agreed and assured, says Mahindra CIE.