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STATEMENT ON CORONAVIRUS - Information for business partners (17.05.2021)


5/17/2021 / Wels

Dear business partners,

Current developments are very dissimilar around the world - not least because of very different vaccination coverage rates. Especially countries with poorly developed health care systems are facing major challenges in this third wave of infections.

One year after its start, the worldwide pandemic is also having an immense impact on the procurement markets for raw materials and especially on the semiconductor market. Massively increased prices and longer delivery times are the result. During the crisis, production capacities were reduced at many manufacturers, also through heavy use of the short-time work scheme. When demand increased more than expected in the fourth quarter of 2020, many manufacturers reached their limits when ramping up production. In addition, individual natural disasters such as fires, floods, winter storms and droughts, exacerbated the already tight supply situation.

Despite the slightly noticeable stabilisation at global ports, there are still capacity restrictions in logistics due to a lack of containers and passenger aircrafts. These restrictions lead to already high and further increasing logistics prices.

Fronius is currently recording increasing incoming orders at a stable and high level. We have continuously increased our capacities and are planning further increases in the following months. Internal risk management is constantly evaluating the situation to secure supplies so that we can react as quickly as possible to any influences and avoid loss of production.

Despite long-term contracts and planning, the development in our procurement markets must be considered as critical. Limited availability over a longer period of time as well as shutdowns of individual production lines cannot be ruled out.

Due to the increasing vaccination coverage rates, we expect a strong decrease in the number of infections in our relevant sales markets. Based on this development, the business trend will continue to be positive. However, it is currently apparent that restrictions and bottlenecks in the procurement market will remain until the first half of 2022 as an after-effect of the corona crisis, which we will take into account in the further planning of capacities. Should global developments require an update, we will, of course, make the necessary updates and inform you as early as possible.


ppa. Herndler Thomas, MAS

Chief Operations Officer

Fronius International GmbH

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