In order to keep an adequate balance between supply and demand, thus to avoid building unnecessary stock throughout the supply chain, we have decided , to temporarily reduce our UWF paper production capacity immediately by approximately 15%, a level that can be reviewed in the coming weeks according to the market evolution.
Until mid-March, we had the second highest order book ever in our history. However, in the last five weeks, due to the COVID crisis that is affecting our economies, with the consequent lockdown of schools, offices, retailers and other business sectors that had a clearly negative impact in printing and writing paper consumption, we experienced a reduction of orders, as well as, several postponements to the end of Q2 and Q3.
Hence, we will reconsider this decision on a continuous basis and adjust it according to the evolution of demand. We would like to reassure our channel partners and customers that this decision will not have any negative impact on our ability to fulfil all existing orders, as well as those still to be booked. We are well prepared to return to our maximum capacity at any moment. Our market pulp and tissue businesses are running normally.
We are continuously reviewing our contingency plan, keeping our key objectives unchanged concerning the health and protection of our staff, suppliers and customers and keeping our industrial sites and offices in safe and healthy conditions.
Navigator will continue to take all reasonable measures to contain COVID-19 risks and maintain business operations. We will keep your team fully updated on the status of our operations and activities.
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