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Tianjin China - Possible Nail Factory Shut Down

FOR IMMEDIATE RELEASE:

 

Tianjin China - Possible Nail Factory Shut Down

    

Dear Valued Customer;

Abington, PA (01/12/2022) – Tianjin China - Possible Nail Factory Shut Downs - Delays on Plastic Caps and Bulk Roofing Nails: The majority of production of all bulk nail products are made in the Tianjin area. CMI ships 40–45 containers a month of plastic cap nails. Our largest plant is in the Tianjin port area, also the port area for Beijing, just 70 miles away..

One of the oldest and largest cities in China with 14 million residents Tianjin is now on partial shutdown as of January 9th. The 8th largest port in the world ships 19 million containers annually. Due to a minor outbreak of less than 50 people, the government has mobilized a mandated testing of the entire population. There is no quarantine at this point, and 6 other cities have full quarantine at this time with the  city of Xian on total lockdown of their 13 million people.

Import and export operations in Tianjin are slowing after a small cluster of COVID cases was discovered over the weekend, according to third-party logistics providers in China. Meanwhile, in Shenzhen, authorities are blaming a contaminated import shipment of infecting a cargo worker, who then spread the virus to three other people. The news comes as China reinforces its zero-tolerance policy toward COVID in the weeks leading up to the Beijing Olympics that begin February 4th and shipping companies are feeling the effects.

Authorities in the port city of Tianjin instituted a tiered system of lockdowns and are testing all 14 million residents, state broadcaster CCTV said, according to The Associated Press. In certain areas of the city, people are not allowed to leave their homes at all. In control zones, one family member is permitted to leave to buy groceries every other day, and in prevention areas people must remain in their neighborhoods.

Beijing is about 70 miles northwest of Tianjin and easily reached by car or high-speed train. The Beijing Center for Disease Prevention and Control on Sunday advised Beijing residents not to visit Tianjin and those in Tianjin to refrain from traveling to the capital. It also asked commuters between the two cities to work from home. By Sunday evening, train tickets from Tianjin to Beijing could no longer be purchased online, CNN reported.

Freight transportation companies and shippers fear labor shortages due to these COVID outbreaks and precautionary measures will lead to a continuation of supply chain disruptions in 2022, with the omicron variant spreading rapidly and the possibility of new variants popping up. Those worries are already a reality just 10 days into the new year.

Contact Tracing - Trouble for work and traveling to work areas:  China has mandatory contact tracing through a required phone app for all adults.  There’s a “color health code” system in China, they use cellphone apps to determine/check all the adults’ health code; if you have green health code you can travel/work in certain areas, if you have yellow code then you must do Coronavirus test and/or quarantine, before that you can’t work or travel. If you have a red code that means you are the most threatening regarding COVID and would be treated as “infected” and very specially. If you come from a “high risk” area then you will possibly have yellow code, then you will have trouble of working and travel. What this means is the truckers that bring in the required raw materials like steel and buckets and caps cannot go into Tianjin at this time, or they may not be able to return back to their home. This is the reality right now we have to work through.  

Below articles can help you understand the situation in Tianjin:

https://www.reuters.com/business/healthcare-pharmaceuticals/china-reports-165-new-covid-19-cases-jan-8-omicron-cases-reported-tianjin-2022-01-09/

https://amp.theguardian.com/world/2022/jan/09/chinese-city-of-tianjin-to-test-14-million-people-after-covid-outbreak

Ports and Plastic Cap Plant Operations:

Ports remain open as well as factories at this time, but they will have to stop production until this situation is resolved. With less than a month to go before the Winter Olympics in Beijing, the Chinese government is sticking to its zero-Covid-19 policy, which has also seen the cities of Xi’an and Yuzhou be locked down after infections emerged. It is unlikely this policy will be relaxed or eased until after the Olympics. This means our plastic cap production and shipments from this area will no doubt have delays. Exact details are unknown at this point, but as the largest container shipper in the US of this product we felt it was urgent to advise you now. At our Tianjin facility we were fully booked for capacity through March, so there is a lot of product at risk to be delayed and we will continue to monitor and update our customers.

Our second plastic cap production facility is fortunately not located in this area and has no interruptions at this time. Production is currently out to April shipments and June arrivals from that plant. Due to the high demand and limited supply we will carefully use our April and May capacity from this plant to service our key Distributor Partners first.

We wish we could provide more detailed information but the situation is unrolling too quickly; we felt it was more important to get you this update now so you can manage your business as best as possible.

We appreciate your business, and we will continue to use all our resources at hand to continue to be your best option for  these products. Please be cognizant that this same China Government mandated shutdown could easily occur in other areas. If it happens near Qingdao that would severely effect coil roofing as 75% of all China coil production is in that area.

Please reach out to us if you have any questions, and thank you for all your support.


Continental Materials, Inc. (CMI) is a national supplier of roofing system component materials and known for BUR (built-up roofing) asphalt with “No Smell”™ odor eliminating technology and its WeatherSeal™ protective packaging, All-Weather™ asphalt felts and coated organic rolls, CMI All-Weather™ modified bitumen rolls, SureGrip™ construction fasteners and roofing nails, Continental’s eco-friendly high density fiberboard roof insulation board and a premium line of SecureGrip™ synthetic roof underlayment products that are sold and used widely throughout the country. CMI has provided value added products and superior service to the roofing industry since 1958.


For more information on CMI products, call (215) 884-4930, visit www.continentalmaterials.com or contact your local CMI Sales Representative.

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