SANTERAMO IN COLLE, Bari, Italy — In response to increased concerns and the evolving situation regarding the coronavirus outbreak in China, Italian furniture producer and retailer Natuzzi issued a statement about its operations in Shanghai.

Natuzzi noted that its Chinese plant serves both the Asian and North American markets, representing about one-fourth of the company’s production capacity for 2020.

“In accordance to safety guidelines, our Chinese plant was closed for two weeks, in addition to the Chinese New Year holiday period,” Natuzzi said in a release. “While operations in the Chinese plant have just re-started, we currently expect a gradual return to normal operating conditions by April.”

Based on that schedule, Natuzzi said it expects a “disruptive impact on revenues” for the first quarter between €10.0 million and €15.0 million, and it expects to start recovering from that impact in May 2020.

In addition, Natuzzi said it has been experiencing production delay on some components provided by third-party Chinese suppliers. It has been working on “alternative solutions,” which it said could result in extra costs.

The company further noted, “The situation has been continuously evolving, and as such, these are our best estimates so far that could materially change if there is meaningful deterioration from current trends.”

According to the statement, the Chinese market represented less than 10% of its consolidated sales, and Natuzzi says it’s too early to estimate the impact of the coronavirus on consumer demand in China.