Company

WIKA UK - Updated Brexit Plan - "No Deal Scenario"

With the withdrawal agreement with the EU now agreed and ratified, we now enter a period of transition which will take us up to the end of 2020. During this time, the same rules and procedures still apply with regards our dealings with the EU.

Even though we have successful reach this point, a NO DEAL Brexit is still a real possibility as we try to negotiate a new trade deal with the EU within the remaining months of 2020.

If we cannot agree a free trade deal by the end of 2020 then the UK could still exit the EU without a deal. WIKA UK will continue to monitor this situation and will react accordingly as the situatins develop.

As a reminder to our valued stakeholders, below are detailed the proactive steps the company will take if the UK exits the EU without a deal at the end of 2020. This will ensure a continued reliable supply of our products after 31st December 2020.

The key actions we are currently taking are detailed below.

We will identify our key fast moving product lines which are critical to our customers businesses and are -

  • Encourage customers to hold their own maximum stock levels.
    - Increase our buffer stocks in the UK to cover any period of custom delays.
    - Move an element of already agreed buffer stocks held at our EU factories to
      the UK.
  • We will work with our key suppliers to ensure a ramp up in production to cover any additional demand for stock.
  • We will encourage our customers to review their stock levels and ensure orders are placed ahead of normal timing to protect against delays.
  • For project work, our team will review all current orders with a view to obtaining early clarification of specifications and / or quantities to ensure these are ordered ahead of time.
  • We will, in the process of speaking to our customer base detail our current approach to Brexit and to detail our current lead times, estimated customs delays, and to ask them to consider their forecasted needs and stocking any specific high risk items for them and their customers.
  • We will continue discussions with our key Freight Forwarders to mitigate the risk of customs delays, including reviewing alternative routes into the UK, preparations for increase in customs administration and potential AEO certification.
  • We will contine to review the political landscape, consult with customers and industry peers as the best way to mitigate the negative effects of Brexit.
  • We will continue to work on a detailed analysis of the financial impact of a no deal Brexit, including increased duty and tariffs, increased cost of freight and customs administration, foreign exchange fluctuations and are looking at ways to mitigate this to ensure minimal impact on our customers.
  • We will also consider travel issues for employees during and after a no deal Brexit.

We encourage any of our trading partners and related companies to make contact with us if they have any direct concerns.

Jonathan Peaurt
Managing Director