Brexit Statement - January 2021
Kleen-Tex UK Limited Brexit Statement - January 2021.
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 Suchedniow Poland. The remaining c30% of our goods are produced in the United Kingdom, the USA, the EU and worldwide.
Preparations for the UK Exit from the European Union
Along with the many other UK companies, Kleen-Tex has taken active steps to assure business continues as normal in the run-up to, through the transition period and post-Brexit relationship.
In late December 2020, both the EU and UK agreed a new Free Trade Agreement, replacing the transition period which came to an end on December 31st 2020. The new Free Trade Agreement FTA came into effect from January 1st 2021.
UK based Customers
In terms of day to day management there will be no change. Based upon the new trading agreement between the UK and the EU, there will be no additional customs tariff for products and service provided from within the EU. Customs and shipping documents will be handled by Kleen-Tex. We will make every effort to absorb additional freight costs that are being introduced by carriers importing goods.
Non-UK based Customers managed by the UK
Historically our teams in the UK have managed a number of additional EU and non EU markets. Now that we have clear direction from both the EU and the UK governments it is our intention to look at re-structuring our business to ensure that we can provide consistent, high quality and highly efficient levels of service across the region. With an FTA now in place, we do not have to act immediately, but it is our intention to initiative a number of changes to balance our business in readiness for our next financial year, June 2021.
Kleen-Tex supplies a mix of UK 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, our commercial teams and operations meet weekly to plan demand and ensure the minimal disruptions to our customers.
UK Borders – Finished Stock Holding
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 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.
As our products and materials are a mixture of UK, EU and non EU produced items, a non-trade deal would inevitable require additional tariffs. The FTA now in place between the UK and the EU has resulted in no additional customs Tariffs.
The current directives and standards governing Kleen-Tex UK Limited for our products will still apply.
With an FTA in place, we now have no concerns regarding the supply of EU sourced materials and finished goods being supplied to the UK.
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 the Brexit talks. This is to ensure minimal disruption to our business and our business continuity to our customers, suppliers and service support partners.