Brexit Preparation Statement

23rd August 2019

Brexit (The UK’s departure from the EU) is now scheduled to be completed on October 31st 2019, and naturally this could raise concerns with some of Nortek’s customers. Whilst negotiating and delivering the Withdrawal Agreement with the EU remains the UK Government’s priority neither Nortek nor any other business can currently make any cast iron guarantees or predictions in relation to the long term implications of Brexit and on this basis it could take several months or even years to determine the outcome amidst the current uncertainty.

Early planning plays a large part in dealing with any challenges which present themselves to any Business and Brexit is no exception. At the start of 2019 Nortek carried out a full impact assessment on how and where Brexit may affect our customers in the areas of both production and supply chain, and our customers can be safe in the knowledge that we do have contingencies and stock holding in place to overcome any supply shortages.

The statement below is an overview on how Nortek plans to avoid any disruption in the event of an orderly or disorderly Brexit.

Customers

Nortek is a wholly UK owned Manufacturer with a single manufacturing site based in Royle Street, Congleton, Cheshire. With all of our manufacturing and active customer base currently located within the United Kingdom we do not foresee any potential Brexit centric issues in relation to staff, manufacturing or deliveries to these customers and so production will continue as normal during and after 31st October. Should this situation change and any orders be placed for delivery to any EU Member Country after 31st October then these orders will be accepted, raised and duly delivered based on the Tariffs, Duties & Export Agreements valid at that particular time.

Supply Chain

Nortek has a wide and varied worldwide supply chain in place consisting of over seventy trusted individual suppliers, built up over many decades of trade. Currently these core suppliers are based in the UK, Japan, South Korea, USA, Canada and Asia and so we do not foresee any supply issues with the bulk of our schedules and materials purchases. Of the few suppliers that we trade with, which are either headquartered or have warehousing based within the EU we are currently working closely with them during this ever evolving situation and will continue to do so, both during the transition and in the months following Brexit in order to mitigate any supply or trade issues when or if they should arise. However we are already in a position to source any affected materials and components from alternative suppliers outside of the EU on either a temporary or permanent basis with the minimum of disruption should supplies from the EU be interrupted.

Due to the much documented World-Wide supply issues and long lead times with MLCC and several other components over the last few years, Nortek already maintains stock holding of several months worth of key and critical components used within our customers’ products and this stock will cover our production order book throughout any changes in our supply chain.

Legislation & Certification

Currently there has been no decision or indication as to which legislation and EU Regulations the UK will follow after Brexit has been completed. However it is likely that the UK will continue to follow existing legislation for at least a transitionary period. Nortek will strive to meet any future applicable legislation or regulatory changes as and when they are rolled out.

This page will be updated with more details as more information becomes available. Last Updated 23rd August 2019.