Following the EU referendum on 23 June 2016, the UK voted to leave the EU. The official withdrawal process began when Article 50 was triggered on 29 March 2017, giving the UK until 29 March 2019 to negotiate an exit deal. The deadline for reaching an agreement before a “No Deal Exit” is triggered has now been extended to midnight, on October 31, 2019. In the event of a “No Deal Exit” or any other scenario that might affect the supply of critical materials and/or equipment to Technic customers, we have drafted this FAQ document to address some general questions our customers may have.
There is still a lot of uncertainty across the chemicals industry with regard to Brexit, especially around the import and export of chemicals and the outcomes of any agreements on registrations, restrictions, and regulations.
At this stage of discussion, very little has been confirmed or agreed to, however, the current state of negotiation has UK seeking an “association agreement” with the EU in order to provide a level of continuity and a healthy economic relationship.
As negotiations progress and greater transparency is achieved, we will update this page with our response and actions from a strategic point of view.
Will supply of your products remain uninterrupted?
Technic UK will proactively be speaking to all of our loyal customers in the New Year in an attempt to plan inventory and 2019 forecasts in line with your requirements. We are currently taking a proactive stance with our supply chain to ensure the continuity of the products. In most cases, we have more than one source (including non-EU supply) for our raw materials and other products, which has worked to our advantage and that of our customers. In recent times when there have been product shortages in the UK market, we were able to ensure continuous supply when other suppliers could not. We would expect the same with regards to Brexit.
Will delivery lead times be affected?
Typically, Technic UK tries to hold at least one month’s worth of finished product inventory at our manufacturing site in Nuneaton. Some of our larger customers are taking a proactive approach of placing forward orders for material to ensure they have sufficient stock to cover the transitional period.
Will all regulatory issues be covered?
Technic Inc. and Technic UK are members of various chemical industry and electronics industry trade associations and these organizations provide valuable information on Brexit. All new legislation is typically passed down from government to these groups and in turn forwarded onto its members. Technic UK will always ensure that we comply with all applicable UK laws and regulations governing chemicals and materials.
What is happening to REACH compliance?
Currently, nothing has been agreed to or confirmed. Technic UK currently purchases all chemicals from REACH approved sources, with the vast majority being European producers. All suppliers and raw materials are currently REACH compliant. No legislation has yet to be agreed as to where the UK will sit regarding current REACH registrations held by UK producers. We will notify all customers once a decision has been made that could potentially affect the ongoing supply of raw materials on an account by account basis.
What back-up and continuity plans are in place?
Until further governmental agreements are in place, it is almost impossible to predict what may or may not happen. Please be assured Technic UK will be proactive to ensure that we protect the best interests of all our loyal customers and we will happily work with all of you to try and ensure a smooth transition should regulations or registrations change. The subject of Brexit is on the agenda of our management meetings and we look to address any news announcements that are made by the government to best protect both our customers and all stakeholders in Technic UK. We have a long history of taking positive, progressive action in all scenarios and will endeavor to continue to provide uninterrupted chemical supply and first-class customer service whatever the outcome of Brexit.