Item 7.01. Regulation FD Disclosure.Gates Industrial Corporation plc ("Gates" or the "Company") is providing the following update on the impact of the COVID-19 pandemic on the Company's business. Gates is prioritizing the health and safety of its employees and the communities around the world in which it does business. The Company is adhering to orders and guidance provided by local governments and related health authorities, and has taken actions to reduce the risk of spreading COVID-19 while maintaining operational continuity. InChina , where the impact of COVID-19 was initially felt, the Company's five production facilities are currently running at normalized capacity levels, serving end market demand as it recovers. The Company's production facilities outside ofChina are currently fully operational, with the exception of those inIndia , the operations of which have been suspended for a planned three-week period that beganMarch 24 , in accordance with a government mandate. For the fiscal year endedDecember 28, 2019 , net sales inIndia comprised less than five percent of the Company's total net sales. Gates employs an in-region, for-region manufacturing strategy, under which local operations primarily support local demand. In those cases where local production supports demand in other regions, contingency plans have been activated as appropriate. Recently, certain customers, primarily inEurope andNorth America , have announced the temporary suspension of operations in various production facilities as a result of the uncertainty associated with the COVID-19 pandemic. The Company is managing its production schedules in response to these customer announcements and other potential changes in the demand environment. Due to the uncertainty surrounding the duration of the COVID-19 pandemic and the extent of the measures taken around the world to attempt to limit its transmission, the resulting impact on Gates' operations is unclear, however it may be material. The Company currently has available liquidity of over$1 billion , consisting of approximately$600 million in cash and cash equivalents and$440 million in revolving credit facility availability, and has no material debt maturities until 2023. Gates will provide a further update on the impact of the COVID-19 pandemic when it releases its first-quarter results.
Forward-Looking Statements
This current report contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements are based on
management's current outlook, expectations and projections and include
statements related to the impact of COVID-19 on the Company's operations and its
contingency plans, as well as the Company's liquidity and financial position.
Such forward-looking statements are subject to various risks and uncertainties,
including, among others, risks and uncertainties related to COVID-19, the
Company's ability to continue operating its manufacturing facilities, the
Company's ability to forecast and meet customer demand and more generally,
macroeconomic factors beyond the Company's control that could cause actual
outcomes or results to differ materially from those indicated in these
statements. Additional factors that could cause the Company's results to differ
materially from those described in the forward-looking statements can be found
under the section entitled "Risk Factors" of the Company's most recent Annual
Report on Form 10-K. These factors should not be construed as exhaustive and
should be read in conjunction with other cautionary statements that are included
in the Company's filings with the
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