Brexit disruption forces German exporters to think again

Brexit disruption forces German exporters to think again

“A catastrophe” is how Henrik Follmann describes Brexit’s impact on his family’s chemicals company. Based in northern Germany, it recently scrapped plans to expand its UK factory because of Britain’s departure from the EU.

Follmann Chemie had planned to invest about £2.5m in making more adhesives at the plant it bought three years ago in Andover, southern England, to boost exports to EU clients. But its chief executive said this plan was wrecked by the extra difficulties of shipping goods both ways across the English Channel: “Brexit has been a nightmare, building up costs and time.”

“We were going to build extra production and storage to supply customers on the continent, but we delayed it and have now taken a strategic decision to cancel this and to expand in the EU instead,” said Follmann, the third generation of his family to run the company.

Follmann has had a tougher Brexit than many companies. But its experience of increased costs and delays to shipments between the UK and the EU is typical of many businesses grappling with the extra bureaucracy and pitfalls created by the new customs checks.

Even though the UK and EU agreed a last-ditch trade deal to avoid tariffs on most goods