Customer Communication Letter-Impact of New Coronavirus Epidemic

Customer Communication Letter-Impact of New Coronavirus Epidemic Dear Customer: Thank you very much for your continued trust and support. The current new type of coronary disease is a global outbreak, and many European countries have already entered a state of emergency. Some countries and regions have implemented bans on public activities, and have stepped down to restrict residents from traveling unnecessarily. The European Union also announced the closure of the border last week.

The main additives and base oils in the lubrication industry, as well as some finished products of Fuchs China, come from Europe and North America. At present, shipping and air transportation from Europe and the United States are beginning to be affected. At present, the empty container resources are very scarce, shipping companies have seriously jumped into the port, and booking difficulty has become more difficult. Our booking cycle is longer than the previous two weeks or so. We are working with our logistics suppliers to conduct a comprehensive evaluation of freight shipments across Europe and the United States to meet the delivery date we agreed with your company.

There have been no signs that our supply will be interrupted a few days ago, and the production in Europe and the United States continues to be produced, but as the epidemic develops, the situation will change at any time. We will take all necessary actions to reduce the impact of the epidemic on our supply of imported finished products. Forecasting is particularly important at this time as the basis for driving raw material procurement and production.

Here, I hope that your company can provide us with a rolling forecast every four weeks for the next four months, so that we can provide more accurate forecasts to overseas suppliers, so as to provide better support for us.

The epidemic is a major challenge to the global supply chain. We firmly believe that with your company's understanding, support and trust, we will be able to work together to overcome the difficulties.

Fuchs Lubricants (China) Co., Ltd. March 24, 2020