Lydall is decelerating production at its manufacturing facilities in North Carolina, Germany and France because many of its largest automotive OEM customers have shut down operations due to COVID-19.
Moreover, with businesses struggling to stay afloat across the US and Europe, the company seemed to have little choice. Sara A. Greenstein, Lydall’s president and chief executive officer, said the decision to ramp down was driven by a sharp, immediate decline in customer demand in the automotive industry.
However, Goldstein noted that the company’s three China-based business segments are seeing growth in their order books, as a majority of employees return to work.
In the interim, the company is minimizing operational expenses and has drawn $20mn on its existing credit facility.