French hydrogen specialist McPhy has temporarily suspended operations at its Italy site amid the coronavirus (Covid-19) pandemic.
McPhy said the assembly of electrolysers and production of stacks at its San Miniato site in Tuscany have been temporarily suspended for a month, since 23rd March.
The company said its other production sites remain operational to date, with limited resources and strengthened safety conditions.
Business continuity plans have been implemented across of McPhy’s sites, in strict compliance with the World Health Organisation’s recommendations and the measures adopted by the authorities in the various countries in which McPhy operates.
“The Covid-19 pandemic will have an impact on the Group’s activity and its 2020 prospects, but it is difficult to quantify these impacts at the time of this press release, notably because of the uncertainty regarding the evolution and extent of the pandemic, as well as the duration of the lockdown measures imposed by governments,” McPhy said in a statement.
“The Group is currently assessing these impacts and regularly updating its estimates according to the evolution of the health situation, in order to best adapt its business continuity and staff protection measures.”
“Within this unprecedented context, cost reductions and the postponement of tax and social security payment deadlines have been implemented, it being specified that the Group is looking at a number of possibilities aimed at anticipating its additional future cash and working capital requirements related to the continuation of the health crisis over the coming months.”
“As a reminder, the Group had a cash position of €13m at the end of December 2019.”
McPhy said it has confidence in its resilience and the solidity of its corporate project, driven by robust fundamentals and the hydrogen market’s positive outlook, enabling it to cope with the challenges of this pandemic.