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Economic Development

"You end up in a state of paralysis and everyone suffers": The North East firms worried about the impact of Brexit

Tariffs, delays and uncertainty are cited by firms who are being impacted by the º£½ÇÊÓÆµ's departure from the EU

The Nissan factory in Sunderland(Image: Unknown)

A number of businesses in the North East - which reports suggest is likely to be hit worst by Brexit - have expressed concerns about the country’s upcoming departure from the EU.

Businesses of all size have expressed concerns about Brexit, with the region’s largest firm, Nissan, issuing a statement this time last year that made clear its worries.

The company had largely remained tight-lipped since the 2016 referendum, but it said in October 2018: “Since 1986, the º£½ÇÊÓÆµ has been a production base for Nissan in Europe. Our British-based R&D and design teams support the development of products made in Sunderland, specifically for the European market.

“Frictionless trade has enabled the growth that has seen our Sunderland plant become the biggest factory in the history of the º£½ÇÊÓÆµ car industry, exporting more than half of its production to the EU.

“Today we are among those companies with major investments in the º£½ÇÊÓÆµ who are still waiting for clarity on what the future trading relationship between the º£½ÇÊÓÆµ and the EU will look like.”

Another large employer in the North East, ship insurance group North, has been forced to launch a base in Ireland to make sure it has access to EU markets following the break away from Europe.

North P&I acquired Sunderland Marine in 2015(Image: Unknown)

 

The Newcastle based marine insurance group, which recently rebranded from North P&I, set in train contingency plans which resulted in the creation of a Dublin subsidiary.

Nic Smith, co-founder of Gateshead-based Commercial Maintenance Services º£½ÇÊÓÆµ Ltd, said his firm won’t be directly affected as it doesn’t currently operate outside the º£½ÇÊÓÆµ..