Södra well set for life after Brexit

  • 18 Apr 2019

Södra is preparing for any potential Brexit outcome by increasing its stock by roughly 20% to ensure customers have enough stock to cover any potential delays.

Also as part in preparation for Brexit, Södra has established an Irish company (Södra Wood (Ireland) Ltd) so that, whether we end up with a hard or soft Brexit, the company has two options to supply to its Northern Irish customers. Either, customers could continue to be supplied out of our distribution terminal in Wicklow, Republic of Ireland, or in the event of a hard border, supplying out of Dundee, Scotland may be a better option.

While Södra Wood (Ireland) Ltd will help combat any potential post-Brexit issues, the investment in Ireland is much more far-reaching. Along with Sweden, Holland and the UK, Ireland is very much a key market for Södra and an integral part of the company’s long-term strategy. Regardless of what happens in terms of Brexit, Södra is keen to continue to support the growth of the Irish economy.

Arguably, the biggest issues could be faced by Södra customers’ customers. Brexit could potentially delay developments and/or investments while they wait on decisions. That said, while Södra may see some delays and a temporary short-term quietening of the market, the company strongly believes that the broader demand for timber will remain strong because of the greater needs of the macroeconomy.

The continued supply of EU timber to Great Britain and Ireland is not threatened. But now more than ever, merchants who talk openly to supply partners will be best-placed to understand and plan for the possible changes afoot.

Importantly, Södra’s commitment to the Great British and Irish market will remain steadfast. As a global business with experience of exporting throughout the world, Södra has no concerns about exporting to any country, whether inside or outside the European Union. This confidence comes from being a vertically integrated business – all the way from planting seedlings to manufacturing and UK distribution.

Whatever the outcome, Södra is prepared to cope with any potential Brexit challenges.

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