Covid-19 Essential Company

To our Valued Customers:
As we all have witnessed, the Covid-19 crisis is constantly changing and so do the preventive tactics of our national, state and local governments. A growing number of states have enacted Executive Orders to instruct their citizens to Shelter In Place (SIP). With each state that joins the SIP action, we are examining what criteria are used to determine the critical sectors of the economy that are allowed to continue to function.

Critical Infrastructure
In every case to date, the SIP states are following the standard set by the United States Department of Homeland Security defining sixteen critical sectors. Some states have added specific industries to this list depending on their regional economy but at minimum recognize the DHS critical sixteen. The chemical industry including specialty chemical is specifically designated as one of the critical sectors (see below).

Continuity of Operations
We continue to operate all facilities across our four business units: Molding Products, HK Research, North American Composites and Interplastic. We do have a number of operations that reside within the ten states (and counting) that have enacted SIP. However, all of these are active members of the specialty chemical sector and continue to operate and serve our customers.

All that being said, should conditions impact or threaten our ability to service our business in any single location, we will endeavor to provide supply through our network of nine manufacturing
locations and thirty distribution centers across North America.

As petrochemical commodities are the major building blocks for our products, our supply chain is following the same exemption for the chemical industry. Specialty materials such as glass fiber and other composite raw materials are also continuing to convert and supply materials. As mentioned in my earlier letter of March 16, the United States leads the world in the degree of infrastructure devoted to the supply of oil and downstream petrochemicals. It has allowed us
multiple domestic suppliers of all key raw materials.

In certain cases where domestic supply of very special materials is limited, we have established supply lines in more than one geography to ensure supply security and competitive position.
Looking Forward

IP Corporation and our business units’ mission continues to rely on servicing the needs of our customers. We are constantly adapting to the twists and turns of Covid-19 and its ultimate control. As you too adapt and change your business, we ask you keep us informed of your plans so we can better service your needs and expectations. Together we can beat Covid-19 and maintain the momentum of the nation’s economy for a swift recovery.

Best wishes for the health of your employees and your business,
Reagan G Stephens
Chief Operating Officer