Impact of Coronavirus on AVX Operations

COMPANY UPDATE
The spread of the coronavirus (COVID-19) in China these past few weeks has caused the World Health Organization to announce the situation as a Public Health Emergency of International Concern and for the Legal Work Committee of the National People’s Congress to declare that, unless otherwise provided by law, the current measures taken by the Chinese government to protect public health are force majeure events and shall excuse a party’s inability to perform part or all of its obligations. Most airlines and many shippers have stopped their services to and from China either partially or fully. Further, many facilities in China are still closed or are on reduced production schedules. Each province is responding to this emergency separately. In particular, AVX Group manufacturing facilities have been significantly affected. In addition, the supply of protective equipment such as masks, non-contact thermal measuring devices, and the like is disrupted and there are shortages both in China and elsewhere.

As a result, there has been a substantial impact on the supply chain of products either manufactured in China or which incorporate components that are manufactured in China. The situation is very fluid with new announcements being made without any prior notice by governmental units, manufacturers and transporters.
These circumstances are unforeseeable and outside the reasonable control of the AVX Group and in the nature of “force majeure,” thereby creating impediments to members of the AVX Group in providing its products and services to its customers.

Accordingly, AVX Group shall be relieved of any liability under any contract for services to and from China if, and to the extent that, such liability is caused by the consequences of outbreak of coronavirus.

In view of the aforesaid force majeure situation, AVX Group reserves the right to modify all or part of its obligations to provide products services that are manufactured in China or which contain components manufactured in China, to change its working procedures, to charge surcharges or otherwise to take measures to adjust its business operations and obligations towards customers to the then prevailing circumstances arising as a consequence due to outbreak of coronavirus.

The AVX Group is continuously monitoring the situation and will provide further updates in this regard when available. If you have any questions or for further information, please do not hesitate to email inquiry@avx.com, call +1 864-967-2150 or write to One AVX Boulevard, Fountain Inn, SC 29644.