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Toronto, Ontario--(Newsfile Corp. - April 16, 2025) - Therma Bright Inc. (TSXV: THRM) (OTCQB: TBRIF) (FSE: JNX) ("Therma" or the "Company"), a developer and investment partner specializing in advanced diagnostic and medical device technologies, is pleased to provide an update to address the potential impact of recent and evolving US tariff policies on our current manufacturing operations of Venowave in China, which serves the US market.
The Company is actively reviewing the implications of recent tariff changes imposed by the US on goods manufactured in foreign countries, particularly China. These tariffs have the potential to significantly increase the cost of our products sold in the US market. In response, Therma has initiated a comprehensive review of all available manufacturing options to ensure the long-term competitiveness and stability of our supply chain.
Therma is reviewing various manufacturing options which includes a thorough analysis of onshoring and establishing manufacturing capabilities within North America (Canada, USA, or Mexico).
The Company is also considering a hybrid approach; combining manufacturing of Venowave or component parts in China with onshoring in North America. In the case of continued full manufacturing of Venowave in China the option will be evaluated in conjunction with strategies to mitigate tariff costs, including potential absorption of some or all tariff expenses if financially feasible in the current dynamic environment.
The Company's decision-making process will extend beyond pure cost considerations and will encompass critical factors such as:
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Supply chain resilience: assessing the stability and reliability of different manufacturing locations and potential risks.
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Lead Times: evaluating the impact on production and delivery timelines.
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Quality Control: ensuring consistent product quality across different manufacturing environments.
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Intellectual Property Protection: considering the risks associated with different manufacturing locations.
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Logistics and Transportation: analysing the efficiency and cost of moving goods from various manufacturing sites to the US market.
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Market Access and Geopolitical Stability: evaluating the long-term implications of manufacturing locations on market access and geopolitical risks.
Therma Bright recognizes that the current tariff landscape is subject to change. Our analysis will consider various potential scenarios and their impact on our business.
It is important to emphasize that no final decision regarding our future manufacturing strategy has been made at this time. The Company is committed to keeping our shareholders informed. We will provide a further update once our comprehensive review is complete and a definitive course of action has been determined. We appreciate our shareholders' understanding as we navigate this evolving situation and work to ensure the long-term success of the Company.