H2O Innovation Presents Update on COVID-19 and Ensures Continuity of its Operations for its Customers
March 17 2020 - 8:00AM
(TSXV: HEO) – H2O Innovation Inc. (“H2O Innovation” or the
“Corporation”) is pleased to present an update on the current
status of the Corporation’s activities surrounding COVID-19.
First, a supply chain risk assessment was
carried out for the various business lines of the Corporation, but
more particularly for Piedmont because of the international nature
of its business. As a first step, let’s recall that Piedmont
designs, manufactures and distributes flexible couplings and filter
housings made of fiberglass, each representing 50% of its revenues.
These filter housings are manufactured by a partner in Tunisia, and
no significant delays have been recorded in connection with the
current pandemic. Piedmont experienced minor delays in the
manufacturing of flexible couplings made in China due to temporary
closure of the foundry from January 23 to March 2. Operations have
since resumed at 100% capacity. Piedmont maintains its delivery
targets for June 30, 2020.
On the PWT side, the specialty chemicals
distributor in China continues its operations. Annual sales should
not be significantly impacted because of the nature of its
customers, mostly food & beverage plants, as well as municipal
drinking water plants in China. In order to offset a higher demand
for specialty chemicals and possible delays in the supply of raw
materials, PWT and Genesys teams have voluntarily increased the
levels of inventories, enabling them to ensure the supply of their
products until the end of June 2020.
H2O Innovation’s 675 employees are located in
Canada, the United States, Spain and United Kingdom. The majority
of these employees are working in offices or plants with minimal
staffing levels, which minimize exposure and transmission of the
virus. Also, more than 50% of all other employees are widely
dispersed in the field for the operation and maintenance
(“O&M”) of water and wastewater treatment systems, essential
community services. In order to ensure the services offered to
O&M customers, we have implemented preventive and contingency
plans specific to the nature of O&M activities.
“Employees are the most important resources that
we have. Without them, it wouldn’t be possible to achieve our
goals, support hundreds of distributors around the world,
manufacture products and provide best-in-class services to our
customers. Together, we must ensure the continuity of our
operations, particularly those related to O&M of more than 200
water and wastewater plants. Also, the manufacturing of specialty
chemicals in Vista (California) and Cheshire (UK) must continue, in
order to provide our products to thousands of water treatment
plants around the world. I can insure you that our IT
infrastructure is robust in Europe and America, and ready to
support all users in USA, UK, Spain and Canada. H2O Innovation is
solid and we do everything in our power to act safely in order to
ensure the sustainability of our operations. We have built together
a strong, reliable and resilient business based on high recurrent
sales and diversified revenues,” stated
Frédéric Dugré, President and Chief Executive Officer of
H2O Innovation.
The maple business line, specializing in the
manufacturing of equipment and products for maple syrup production,
is aimed at producers and not restauranteurs of sugar shacks. The
measures taken by the Quebec government to close establishments
offering catering services should not affect the equipment sales,
since it is not the Corporation’s target clientele.
Finally, we have created an internal COVID-19
intervention team (gathering human resources, legal, operations and
communications) which is meeting daily to ensure continuous
communication to all stakeholders.
About H2O InnovationH2O
Innovation designs and provides state-of-the-art, custom-built and
integrated water treatment solutions based on membrane filtration
technology for municipal, industrial, energy and natural resources
end-users. The Corporation’s activities rely on three pillars which
are i) water & wastewater projects, and aftermarket services;
ii) specialty products, including a complete line of specialty
chemicals, consumables and specialized products for the water
treatment industry; and iii) operation and maintenance services for
water and wastewater treatment systems. For more information, visit
www.h2oinnovation.com.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) nor the NYSE Euronext Growth Paris accepts
responsibility for the adequacy or accuracy of this release.
Source: H2O Innovation Inc.
www.h2oinnovation.comContact: Marc
Blanchet+1 418-688-0170 marc.blanchet@h2oinnovation.com
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