Daily Management Review

British chemical companies: Damage from leaving the EU will reach $ 660 million


Companies will have to create their own database of chemical products, the cost of which will be about 500 million pounds sterling.

About this in an interview with Reuters, said the head of the Chemical Industries Association Stephen Elliott. After leaving the European Union, British companies will lose access to the Chemical Classification and Labeling (REACH) database maintained by the European Chemicals Agency (ECHA).

The head of the British industry organization noted that the plans of the British authorities to copy the overall structure and provisions of the European database are not encouraging to chemical companies in the country. According to him, the companies have been entering data into REACH for 10 years, and creation of a similar database will cost Britain approximately 500 million pounds (about $ 660 million)

The British companies Croda, Ineos, Johnson Matthey, Synthomer and several others that make up the chemical industry of the country, export about 60% of their products to the EU, representing the second largest export sector in the UK and generally being the second largest industrial sector of the country after the automotive industry.

The situation with the exit from the EU, has already led to negative consequences for this segment of the British economy. A number of companies, in particular Nissan and Honda, have already reported (formally explaining their decisions by other reasons) about refusing to continue production of a number of models and partially closing production in Britain.

source: reuters.com