Company

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

We now find ourselves in a situation where a NO DEAL Brexit is a real possibility and although still not the likely outcome, WIKA UK is putting into place measures to counteract the impact of this and to ensure a continued reliable supply of our products after October 31st 2019.

The key actions we are currently taking are detailed below.

We have identified our key fast moving product lines which are critical to our customers businesses and are -

  • Encouraging customers to hold their own maximum stock levels.
    - Increasing our buffer stocks in the UK to cover any period of custom delays.
    - Moving an element of already agreed buffer stocks held at our EU factories to
      the UK.
  • We are working with our key suppliers to ensure a ramp up in production to cover any additional demand for stock.
  • We are encouraging 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 have been reviewing all current orders with a view to obtaining early clarification of specifications and / or quantities to ensure these are ordered ahead of time.
  • We are in the process of speaking to our customer base detailing 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 are continuing 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 are continuing to review the political landscape, consult with customers and industry peers as the best way to mitigate the negative effects of Brexit.
  • We are undertaking 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 are also considering 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