CPL Aromas, whose headquarters are in the UK, has announced measures to ensure a smooth flow of business post-Brexit.
CPL Aromas has taken steps to mitigate potential delays at customs borders and has also announced its position regarding the chemicals legislation - REACH - which currently governs the UK's chemicals sector as well as the rest of the EU. In addition, the global company has created a new manufacturing base in Spain, which it announced recently, to help ensure there is no disruption to business after 29 March 2019.
REACH
Currently the UK chemicals industry is regulated through a framework largely based on the EU REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) legislation. REACH requires EU companies to register chemicals with the European Chemicals Agency (ECHA) before placing them on the market and puts in place additional controls on hazardous chemicals.
If on 29 March 2019 when the UK leaves the European Union, no transition arrangements are in place, the UK will be immediately responsible for regulating chemicals through its own legislation and will be treated as a "third country" by the EU.
According to the GOV.UK website, the EU Withdrawal Act would preserve REACH as far as possible. The Health and Safety Executive (HSE) will act as the lead UK regulatory authority, with a transition period for the UK registration of existing EU registered chemicals.
CPL is working with suppliers to confirm that any raw materials produced, or imported into the UK in relevant quantities within existing EU REACH registrations, are automatically' grandfathered' into the UK regime i.e. granted the same rights and restrictions as currently to ensure consistency.
They are also working with suppliers to ensure that any raw materials produced and registered in the UK continue to be EU REACH compliant post Brexit, so that any of their fragrances exported to the EU are also compliant.
Supply Chain
In terms of minimising supply chain disruption, following the UK's exit from the EU, CPL has begun to take steps to mitigate potential delays at customs borders.
Only 10% of CPL's raw materials come from continental Europe. To mitigate any supply issues CPL will either build up raw material stock levels or ensure UK agents of those producers build up adequate stock as a contingency. The Group will also ensure that their manufacturing ERP system is updated with any possible longer lead times from these suppliers, in order to meet their customers' delivery requirements.
CPL has recently acquired dM fragrances of Spain based in Barcelona which now forms CPL Aromas Spain. The company is in the process of investing in the Barcelona site to increase its capacity and to bring it in line with the production facilities elsewhere in the Group. In the case of significant supply chain disruption at customs borders, CPL will be able to switch manufacturing sites as necessary to ensure continuity of supply to EU-based clients.
Nick Pickthall, CPL's COO, is positive about the measures put in place. He said: "Since the referendum results were announced, CPL has been working tirelessly to minimise disruption to our customers that Brexit will cause. With robust systems in place and the continued successful integration of CPL Spain, we feel we are in a strong position to weather the potential storm. Fragrance is the ingredient that ignites people's imaginations and is the invisible difference in so many products that for a range of goods, from fine fragrances to household goods to personal care and other everyday items, it is essential to business and to consumers that superb fragrances can continue to be made available cost-effectively and seamlessly".
