Maroon Group Coronavirus Update February 25, 2020

Maroon Group - Coronavirus Update February 25, 2020

As follows are key updates regards the Coronavirus outbreak:

• The resumption of plant operations and logistics appears to be coming on stream much slower than anticipated. Many companies do not anticipate operating at normal capacity for another several weeks.
• Intra-country logistics are showing improvement with restrictions across many provinces being lifted. Availability of trucks and drivers has improved.
• Ocean and air freight logistics remain challenging although progress is anticipated over the next several weeks. Availability of sea freight containers in the region is tightening.

As of early February, 2020, the World Health Organization (WHO) has not recommended any restrictions on the movement of goods and products originating from China. It is currently understood that the coronavirus is mainly transmitted through respiratory droplets between persons. Preliminary information indicates the coronavirus does not survive outside a host for an extended period of time and simple disinfectants can kill the virus. Competent authorities have not advised on any actions regarding commercial imports from China.

As encouraged as we are by some of the progress that's being made, it would be prudent to anticipate interruptions for the foreseeable future. While Maroon Group's exposure to the Chinese supply base is minimal, there are broader impacts to the global markets that will likely occur. It's important that we continue to have open lines of communication with our customers to ensure continuity of supply.

If you have additional questions or concerns, please feel free to contact your Maroon Group representative or Scott Simmons, Maroon Group's Director of Safety, Compliance and Sustainability at ssimmons@maroongroupllc.com or 440-937-1000.