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The Altro Group Brexit statement

Update on the Altro Brexit position - Sept 2019

In light of the uncertainty surrounding Brexit, we are doing all we can to mitigate any potential risks which may arise. The UK’s decision to leave the European Union (Brexit) means that we must meet the challenges that this decision will bring. In order to ensure business continuity during this period, we have put into effect a number of strategies with the aim of making the transition away from EU membership as seamless as possible for both Altro and our valued business partners.

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 ensure continued effective operation of our manufacturing sites, we are also developing a detailed plan for building an appropriate level of critical raw material stocks at each of our sites, thus providing further assurance of continued supply to our customers.

There is still considerable uncertainty as the Brexit negotiations take place and therefore our plans are intended to allow for a large degree of flexibility. As the negotiating deadline for exiting the EU looms closer, we recognise that a number of parties will understandably be concerned; these include customers and suppliers as well as our network of agents and distributors. We have considered the potential impact of changes to Customs borders, tariffs, costs and administrative workload, as well as the likelihood of exchange rate volatility. We have researched the implications of potential tariff and duty changes, as well as possible increased lead times. We have undertaken a review of our supply chain to mitigate the impact of any major changes following Brexit and accept that policies and processes may require amendment in due course.

As a Supplier to and purchaser from many Non-EU countries around the world, Altro is well versed with the demands of international trade. We have every confidence in the skill and expertise of our administrative staff and their understanding of export procedures to be able to cope with and adapt swiftly to any changes necessitated by Brexit. Additionally we widely employ the services of forwarders and agents who have “Approved Economic Operator” status.

Altro will continue closely monitoring all updates from HMRC (Her Majesty’s Revenue & Customs ) regarding the possibility of a ‘No Deal’ Brexit and have undertaken additional Customs training to enable us to deal with the re-introduction of Customs declarations on goods moving between the UK and the EU. By undertaking these actions Altro anticipates protecting customer service levels as we navigate through the first weeks and months of Brexit.

We understand that individual concerns and priorities may differ depending on the nature of the business, albeit that most interest clearly lies in the impact of product availability, lead-time and cost implications. With this in mind we would encourage open dialogue and information exchange with your usual Altro contact person, who will be happy to note, investigate and act upon any specific query or information request.


Dec 2018

The decision made by the UK to leave the European Union, or ‘Brexit’ as it has become known, means that we must embrace the challenges that this decision will bring. In order to ensure that our business is sustainable, we have put into effect a number of strategies which will ensure the strongest possible outcome for our company as the transition away from EU membership takes place.

Inevitably there is still a great deal of uncertainty as the Brexit negotiations take place and therefore our plans are intended to allow for a degree of flexibility in the interim period. Assurances have been made by the Government regarding Brexit, yet it is impossible to predict the final outcome.

The Altro Group routinely import and export materials both within and outside of the EU, accordingly we are well versed in the necessary procedures, already holding and using an Economic Operator Registration and Identification (EORI) number, required to import goods from the EU. We already work with a number of customs brokers and freight companies who can support us with any extra requirements relating to customs clearance entries and exit and entry summary declarations.

There has been a lot of speculation in the media about the possibility of congestion at British and EU ports in the immediate aftermath of Brexit. The speculation is based on the expected necessity for additional paperwork to be completed on goods transiting through the ports, the worst case scenario being that there could be limited movement of goods between the UK and the EU for the months of April and May 2019.

In the unlikely event of a no deal, the UK have committed to ensure UK legislation replaces EU legislation via the EU Withdrawal Act, establish a UK regulatory framework and build domestic capacity to deliver the functions currently performed by ECHA. The legislation would preserve REACH as far as possible, while making technical changes that would need to be made because the UK has left the EU.

The Altro Group are putting actions in place to maintain higher levels of stocks in the UK prior to the leaving date based on market demand. Our principals are supporting us with the availability of extra forecasted capacity for their products where possible. We are asking that our customers work with us by forecasting demand and plan in advance their order volumes for 2019 where possible. Placing call off / forward planning orders will allow us to ensure adequate stocks are already in situ and pricing is maintained for as long a period as possible going into Q2 2019.

It is recognised that as Brexit unfolds a number of parties will be concerned, including our customers, European based suppliers and our network of agents and distributors. Equally, within our own organisation wide ranging sections of our business will likely be affected by changes; areas including customer services, sales, procurement, finance, compliance, the samples team, human resources and information technology. We have therefore considered, amongst a number of areas, the potential impact of changes to tariffs and Customs borders, the potential impact on our costs, administrative workload and our employees, but also the effect of increased volatility of exchange rates.

As a prelude, we have already researched the implications of potential tariff and quota restrictions and considered the potential disadvantages, and advantages of these. We have undertaken a review of our supply chain for components and raw materials to mitigate the impact of any major changes following Brexit and explored possible changes needed to our policies and processes. As a company well versed with the demands of international trade, we have every confidence in the skill and expertise of our administrative staff and their understanding of export procedures to be able to cope with any changes necessitated following Brexit.

We will be undertaking a review of our agents and distributors contracts to ensure that they are relevant. We wish to reassure our partners of our ongoing commitment to continued ease of trade, both within the EU and with our other export markets.

We hope that this statement answers the main concerns that you may have during this period of uncertainty. If you have additional queries or would like clarification, please do not hesitate to contact us.

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