MAN Energy Solutions, a UK-based marine engine firm, announced that it stockpiled key components worth £2.5m due to ‘uncertainty’ over Brexit. The company added that the move was made for ‘risk mitigation’ purposes.
Specifically, the company is also under discussions for export arrangements and will use other ports, if delays were to occur at Dover.
The company’s managing director, Richard Guest, commented that there are uncertainties; therefore, it is of a big importance for the company to be able to easily manage the changes very quickly.
MAN Energy Solutions is part of a Europe-wide group, worth €3bn (£2.58bn), which in turn is owned by Volkswagen.
The company manufactures engines. Although the majority of its exports aim Asia, Middle East and South America, 30% of its key components come from Europe.
Mr Guest said uncertainty over the UK’s departure from the EU was already forcing change in the supply chain, adding that British business needed stability to attract future investment.
What we want from the politicians is a successful Brexit that doesn’t disrupt trade flows
… Mr Guest noted.
In addition, Mr Guest when talking to BBC East Sunday Politics Program, he highlighted that the company has already conducted a risk analysis of possible Brexit scenarios. He continued that £2.5m of vital components were being stockpiled and multi-currency contracts were being considered to counteract potential exchange rate fluctuations.
Other measures included using ports in the north east of England and shipping goods to the Republic of Ireland via Liverpool.
But Mr Guest supported that MAN Energy Solutions could do well after Brexit.
Some of our UK operators who previously relied on European suppliers will be looking for a UK-based supplier to provide their equipment.
.. he concluded.
