The Urethane Blog

Recticel Statement

Recticel
Press Release of Recticel – 27 March 2020
Priority given to ensuring safe working conditions and preserving Group liquidity
 

In response to the COVID-19 outbreak our first concern has been to take all necessary precautionary measures to keep our employees healthy and ensuring a safe workplace. Recticel has implemented strict behavioral and precautionary measures, in line with the recommendations issued by the governments of the countries in which it operates and by the World Health Organization, in order to minimize contamination risks.

 

COVID-19 impact on Recticel operations

While our Automotive activities in China are progressively returning to pre COVID-19 levels, our Automotive activities in Europe are temporarily shut down as most European OEMs have shut their assembly plants. In the other business segments, customer demand has been rapidly decreasing in line with the lockdowns declared in the countries where we operate. As a consequence, we have adapted our production levels to match demand, either by curtailing production or by temporarily shutting down production sites.

 

Temporary unemployment is being implemented to the maximum extent where applicable. Top management remuneration is temporarily reduced by 30% as a token of solidarity.

 

In response to this unprecedented environment, capital expenditure is reduced to the minimum, and all non-essential projects have been put on hold.

 

Liquidity

The Group liquidity is ensured by the available credit facilities, with a headroom of more than EUR 150 million drawable at short notice under our Group Syndicated Credit Facility, our bilateral credit lines and our factoring program.

 

Withdrawal of full-year 2020 outlook provided on 28 February 2020

Given the highly uncertain and rapidly changing situation, and despite a performance in line with our previous guidance until mid-March 2020, we withdraw the guidance given on 28 February 2020 of a full year 2020 Adjusted EBITDA increase.

 

Recticel is monitoring the situation closely and will continue to respond as required to help safeguard its workers and employees, while adjusting its operations and preserving its cashflows.

 

Olivier Chapelle (CEO): “Our number one priority is the health and wellbeing of all our employees. As the pandemic is causing extra-ordinary challenges to all of us, we are taking all necessary

precautionary measures to protect our employees and our business, and I remain confident that we shall overcome today’s crisis without compromising our long-term strategy of sustainable

development. Finally, I want to express my deep respect and gratitude to our very dedicated employees as well as to everybody fighting the effects of this pandemic.”