The renewable energy group has announced the inclusion of a new clause in contracts with suppliers and customers to protect itself against Brexit. The company itself describes this as a “Brexit clause.” Its aim is to mitigate the impact on its business of “the specific risks” arising from the UK’s exit from the European Union from 1 January 2021. At this stage, a hard Brexit is not yet ruled out.
Siemens-Gamesa is adding the clause to protect itself and offset the impact of new customs duties which will be applied to imported and exported equipment. This is currently duty free. Siemens-Gamesa has also estimated the value of its subsidiary in the United Kingdom at 203M euros, specifying that 2.7% of its total balance sheet is located in that country. The company not only exports finished products but also imports materials for the manufacture of wind turbines blades at its British facilities, which employ more than 800 people.
Gamesa says it is expected customs duties will be applied to imported equipment that is currently duty free. That said Boris Johnson’s government is working to ensure that, at least in the first year following the UK’s departure, no customs costs arise.