Tecnoglass Releases Q1 Report, Addresses Effects of COVID-19
May 11, 2020
Tecnoglass released its first quarter 2020 results, which included an update on businesses conditions related to COVID-19.
The company temporarily suspended production at its facilities in Colombia from March 23 to April 13 during the initial phase of a nationwide shelter-in-place order by the Colombian government to prevent the spread of the COVID-19 virus, say officials. While the shelter-in-place order was subsequently extended to May 25, Tecnoglass resumed full operations at its facilities on April 14 given its exempted designation as a supplier of critical products to essential business sectors such as infrastructure and construction.
Tecnoglass has retained all of its labor force, of which approximately 60 percent are contracted through staffing agencies that provide significant contractual flexibility. During the period that production was suspended, vacation days were used to retain eligible employees and the company used the time to implement broad safety measures before returning to normal operations.
The commencement of the Tecnoglass’s previously announced construction of a second float glass plant through its joint venture with Saint-Gobain, which had been scheduled to begin in 2020, has been put on hold, pending better market visibility, say officials. The company will continue to assess additional actions to strengthen its operational and financial position as business visibility improves.