Glasgow-Based Weir Group says it is back to full working capacity at its three locations in China, 86 days after the first cases of coronavirus were reported in the country.
But the multinational engineering company admitted it expects widespread disruption to its operations in other parts of the world in which the outbreak has yet to peak.
Weir said it plans to cut its North American workforce by a quarter as part of a bid to save $30 million after orders plunged in the mining and energy sectors. It expects capital expenditure by oil and gas companies in the region to fall by 30%.
Its operations have been worst hit in the US, UK, South Africa, Peru and Malaysia as governments impose restrictions but most mining operations have continued.
In China, Weir operates mining and oil and gas facilities at Chengdu and mining plants at Shanghai and Wuxi.
In a stock market update, Weir said: "We are planning for a number of potential downside scenarios of varying severity which consider: widespread disruption to our operations and supply chain; deferment of original equipment orders; and, reduced aftermarket demand.
"Each scenario considers a range of further mitigating actions to reduce costs and conserve cash at both the operational and corporate level."
The group said trading up to the end of February had been in line with expectations in all divisions. It has around £500 million in cash and loan facilities, and debts at 31 December 2019 stood at 2.4 times EBITDA, within its covenant of 3.6.
