Lexmark Gives Update on Supply Chain and Claims independence from China’s Ninestar.

[jim]

To: Our valued customers and partners.
From: Melanie Hudson, senior vice president and chief commercial officer, Lexmark.
As you might be aware, on June 9, the U.S. Department of Homeland Security (OHS) announced actions to restrict goods produced by Ninestar Corp., one of Lexmark’s many suppliers, from entering the United States. Lexmark learned about this action when it was announced to the public, and we took immediate action to shift manufacturing for the U.S. away from Ninestar and its affected subsidiaries.

While Ninestar is one of Lexmark’s investors, Lexmark is not part of the order and is not connected to the action taken by the OHS. We continue to operate as an independent company headquartered in Lexington, Kentucky.

Today I am pleased to provide you with an update on the adjustments to our supply chain.
As a global manufacturer that utilizes a multi-source strategy and regional manufacturing facilities, we anticipated minimal disruption because only a small portion of Lexmark manufacturing required a transition to a new supplier. However, due to start-up challenges and strong market demand, we have experienced availability challenges.

Those start-up challenges are now behind us. We have completed the transition to new suppliers, have been at full manufacturing capacity since mid-November, and look to fulfill all current backorders by the end of February. We also expanded our supplier base in Mexico and completed the largest supply chain warehouse move in Lexmark history. These actions position our logistics network to meet customer demand, and provide additional efficiencies, flexibility, and logistical benefits to improve overall delivery to our customers and partners.

I recognize that our inability to fully meet demand these past few months has been disruptive to your business. I want to personally thank you for your patience and apologize for the inconvenience this may have caused. I am excited about 2024 and the opportunity to bring you groundbreaking new offerings that position Lexmark to outperform our competitors in 2024 and beyond. We value your partnership and look forward to continued success together.
Sincerely, Melanie Hudson.

[Author]

December 8, 2023 at 3:27 PM