As you will all be aware, Brexit uncertainty continues almost with no end in sight. Added to that we now have grave concerns about our ability to continue to source steel product from some of our traditional UK sources. Kloeckner Metals has always been proud to buy UK sourced metal products wherever possible but continuity of supply to our valued customers has to be our top priority.
Having foreseen the liquidity issues that some parts of the UK steel industry, in particular, now appear to be suffering, we at Kloeckner Metals UK have been sourcing steel products off-shore for some months. We have sufficient material in our warehouses and inbound supply chain to give us confidence that we will be able to meet our customer needs in most foreseeable circumstances. However, should the UK situation worsen beyond our most pessimistic forecasts, we may be forced to allocate product on a fair and equitable basis. In those circumstances, we would most likely prioritise shipments on the basis of historical customer purchases and credit history.
Please be assured that we are in close dialogue with our UK sources of product and we continue to request regular updates from their senior management teams.