THE HAGUE, July 08 (AFP): Philips warned on Sunday it may shift production out of Britain in the event of a 'hard' Brexit.
The Dutch electronics giant said it was deeply concerned about competitiveness of its operations in the United Kingdom (UK).
The Amsterdam-based group employs some 1,500 people in Britain, most notably at its baby care products-for-export factory at Glemsford in Suffolk.
"I am deeply concerned about the competitiveness of our operations in the UK, especially our manufacturing operations," Philips Chief Executive Frans van Houten said.
"We estimate that the cost of the (Philips') exported products will increase substantially under any scenario that is not maintaining the single customs union," he said in a statement.
He said any changes in current free trade agreements, the single customs union and current EU product certifications "is a serious threat to the competitiveness of this factory."
"We need to do worst case scenario planning," Van Houten added.
Philips is the latest company in a chorus of major industrial players to warn about the negative impact of an acrimonious split between the UK and European Union.
Jaguar Land Rover, BMW and Airbus are the other major companies that have warned about the negative impact of Brexit.
"At the moment we are considering all scenarios, including one in which there is a so-called 'hard Brexit'," Philips spokesman Steve Klink told AFP.
"In that case, it could include the departure of our manufacturing for export," said Klink.
Van Houten however emphasised: "Philips remains absolutely committed to its current and prospective future customers in the country" including hospitals.
