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Statement on Wagner UK’s BREXIT contingency planning

Status at January 2019

Introduction

Since the United Kingdom (UK) referendum result on membership of the European Union (EU) in June 2016, Wagner UK Limited has been working to assess and mitigate the likely impacts of ‘Brexit’ on its customers and suppliers under a variety of potential outcomes. Given the continued uncertainty around the overall shape of Brexit set for 29th March 2019, we have focussed our efforts in the last few months on preparing for a “no deal” or “hard” Brexit.
Our fundamental objective is to ensure that we offer continuity of service and supply to our customers, wherever they are, and this statement is provided to give further information to our customers and supply chain partners on how we plan to achieve this objective.

Background

Wagner UK Limited is a UK registered business and wholly owned subsidiary of Wagner Group GmbH which is based Langenhagen near Hannover in Germany. We supply goods and services to customers within the UK and Republic of Ireland from our locations in Bishops Stortford and Birmingham.
Brexit focus areas
Our initial risk assessment identified a number of key areas of focus for a potential Brexit impact. In recent months we have focused on those areas that could have the most direct impact on our ability to service customers, specifically:

  • Having a Brexit-ready trading model
  • Maintaining effective customer service and supply chain, in the main related to efficient movement of goods

Uncertainty over the eventual Brexit impact has, if anything, increased of late. We have thus switched into full contingency planning with a view to ensuring business continuity under a “no deal” Brexit. We continue to hope that a business-friendly deal can be reached but we remain optimistic that our ability to do business with customers and other partners will not be materially affected, even under the harshest exit scenario.

Trading model

We are making preparations in terms of our internal trading model within Europe to ensure that our ability to move products to the UK from our parent company based within the EU is not at risk. Likewise, our preparations consider the movement of goods from UK to the Republic of Ireland. In conjunction with our logistics partners we are reviewing which ports are best placed to offer the appropriate service levels post-Brexit, as well as ensuring that we can perform import and export functions with the relevant authorities in the case of an exit from the EU on World Trade Organisation (WTO) rules. We do not expect customers or suppliers to be significantly affected by our changes.
Customer service and supply chain

In recent months, we have continued to work with our customers and supply chain partners to prepare for Brexit day and beyond.
We have been developing our contingency plan to ensure supply continuity in the event of a hard Brexit and the likely resulting confusion and delays at borders. To provide our customers with the secure supply they need, we have a comprehensive plan to build significantly increased stock levels of finished goods to be held within our UK locations prior to 29th March 2019.
We understand that many customers have concerns and we will continue to review our position as more information is provided by the Government.  At this stage there is no need to change your normal ordering pattern. If this advice changes we will inform you directly.