Originally Posted by
Des Parrot
On Monday we "release" 139 staff, 100% entirely related to Brexit as the customer has rewritten their contracts and they now cite "must be made within the EU". If 52% of those people voted leave, they basically voted for their own redundancy.
Over the next 5 years another 600 will follow, as the company moves it's manufacturing from UK to Eastern Europe. Approximately 70% of our product is Exported to the EU and most of those customers have issued an ultimatum, that they will not renew their contracts unless the company moved to within the EU.
The company has been in the UK 30 years, the current year will be our most successful, as since 2008 we've managed to quadruple turnover. All of that will be in vain within 36 months.
Diesel, electrification and Japan trade agreement all contribute but Brexit has been the catalyst and a path for the customers to turn the screw. Currently we're paying assurances, freights premiums, storage premiums, component interest and stock builds to the customer at the rate of around £60k per day.
We have 5 major customers. Honda have declared they are leaving in 2021, our French & one German customer are not renewing their contracts after April 2020. Our UK customers sales are currently around 35% of forecast and we're currently renegotiating with our second German customer, for their contracts due in 2021.
I have previously fought this off both in 2007 & 2011, this time it's a done deal. I've got no fight left in me.
Me, I've been offered the job of setting up the new factory & transferring the manufacturing to the EU. That will see me through to retirement. The other 750 people plus the supply chain employees, will need to hope that Brexit reverses their fortunes.
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