CDW partially resumes Shanghai production; says lockdown may hit FY2022 performance

PRECISION components specialist CDW Holding has resumed production at one of its factories in Shanghai, China, since it temporarily halted operations amid a citywide lockdown to curb the spread of Covid-19.

On May 9, the SHCD factory resumed production with governmental approval under a “closed loop” manufacturing arrangement, and applications have been made to increase the worker quota allowed to re-enter the factory.

Meanwhile, the application to resume production at its other Shanghai factory, the SHTP factory, is still ongoing, CDW said on Tuesday (May 17).

The group expects the production halts may have an impact on its performance for the financial year ending Dec 31, 2022.

CDW noted that both the SHCD and SHTP factories have temporarily stopped production since the Shanghai lockdown started on Apr 1, in accordance with government regulations.

It added that its other factories in China, located in Dongguan and Wuxi, have not had any production halts to date.

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Shares of CDW were trading flat at S$0.29 as at the midday break on Tuesday.