Brexit Statement - December 2020

Kleen-Tex UK Limited Brexit Statement at 1pm on Tuesday 22nd December 2020.

Kleen-Tex UK Limited is part of Kleen-Tex Europe, with our European Head office based in Ebbs Austria. Kleen-Tex has commercial operations in Austria, Poland and the United Kingdom. Kleen-Tex Europe is a subsidiary of Kleen-Tex International, based in Atlanta GA, USA.

Kleen-Tex Europe manufacturers around c70% of goods sold across Europe from our manufacturing facility in Suchedniów Poland. The remaining c30% of our goods are produced in the United Kingdom, the US, the EU and worldwide.

Preparations for the UK Exit from the European Union
Along with the many other UK companies, Kleen-Tex UK Limited has taken active steps to assure business continues as normal in the run-up to, through the transition period and post-Brexit relationship.

Currently, no-one understands the full impact of the new trade relationship between the UK and the European Union, however; we have examined all areas of our business and supply chain to understand any potential risk areas and are confident that the potential impacts are understood and mitigated.

UK based Customers
In terms of day-to-day account management and order processes there will be no change. However, based upon the new trading agreement between the UK and the EU, there may be additional customs tariff, it is our intention to minimize this effect, more to follow.

Non-UK based Customers managed by the UK
Historically our teams in the UK have managed a number of additional EU and non-EU customers. Kleen-Tex UK Limited has provisioned for plan A (no deal) and plan B (a deal), based upon these two outcomes Kleen-Tex UK Limited will look to move some customers to other European Commercial teams, with some business customers moving from Europe to the UK or vice versa to ensure continuity of business remains, more to follow.

Manufactured Goods and Supply Chain
Kleen-Tex UK Limited supplies a mix of European designed and manufactured products and 3rd party product from within the European Union and globally. Generally (pre Covid-19) we would have a mix of Made to Order and or Made to Stock, and our commercial and operations teams meet weekly to plan demand and ensure the minimal disruptions to our customers.

UK Finished Goods
Kleen-Tex currently maintains two warehouses of finished goods stock in the UK, both containing product manufacturing in the UK, the EU and global, these being at our own Bolton Warehouse and at our 3rd party fulfillment partner in Manchester Our stock levels are maintained to a suitable level to minimize supply constraints for our UK customers.

Customs and Tariffs
As our products and materials are a mixture of UK, EU and non-EU produced items, a non-trade deal would inevitably require additional tariffs. For EU originated material, the worst-case scenario would be that World Trade Organisation tariffs would be levied. More to follow.

Regulations
All our manufactured goods will continue to meet current EU and British guidelines and directives in relation to product suitability. Our Code of Conduct is available upon request

People
Manufacturing and Response

Kleen-Tex UK Ltd operates from two locations, Kemble in Gloucestershire and Bolton, Greater Manchester. Part of our focus has been to ensure our workforce is compliant, understands the impact of Brexit and are fully trained on any new ways of working as a result of the outcome of Brexit talks. This is to ensure minimal disruption to our business and business continuity to our customers.


Gary Haynes
Managing Director