We source various elements of our flexitank systems from China and already vendors are telling us they cannot know when the components will be available. Fortunately, we have secondary vendors in other countries.
The primary manufacturing operations of FGN flexitanks are in Indonesia, where supply chains continue to flow uninterrupted. We wonder what companies who source polyethylene film and assemble flexitanks in China will do as supply disruptions continue.
FGN moved our flexitank manufacturing operations out of China in 2018, specifically because of supply chain risk issues. Since then, 25% tariffs have been implemented on Chinese flexitanks. And now we have COVID-19.
FGN is increasing our flexitank safety stocks in the United States to ensure adequate inventories if shortages develop across the market. Please let us know if you expect to experience shortages and we will consider your needs in our future inventory levels.