A Dundee company could leave the city and put its 100 employees out of work if Britain quits the European Union.
Stoneridge Electronics exports the bulk of its tachograph software and services to the Continent, where it is in direct competition with a German rival.
Vice-president Amanda Robertson said the Claverhouse industrial estate plant where she is based offers a wide range of products and services geared to EU legislation.
“For us, the UK no longer being a member of the EU would have a significant impact. The additional costs of export taxes and documentation would likely make us uncompetitive and unattractive to deal with,” she said.
The Stoneridge aftermarket division in Dundee, which emerged from a reorganisation after tachograph manufacturing ended at the plant in 2006, prides itself on the quality of its service to customers throughout Europe.
“From our HQ in Dundee we speak eight different languages, and free movement of labour within the EU allows Stoneridge to easily recruit for these language skills,” she continued.
“Ultimately the company is only successful if able to provide products and services that customers demand at a cost and quality desired.
“If the UK leaves the EU then we may require to review our location should we not be able to sustain a competitive position as a non-EU company.”
Britain’s continued membership of the EU has stirred controversy, with Prime Minister David Cameron promising a referendum on the issue in 2017.
Right-wingers in his Conservative Party are restless about Brussels bureaucrats’ influence on British affairs. The party is also under pressure from Ukip, whose main purpose is to take the UK out of the EU.
Germany is a key market for Stoneridge, which this year bought German company Motometer for their tachograph distribution and support business to improve brand awareness, offer competitive pricing and direct support.
Amanda Robertson, who is on the Institute of Directors’ Tayside committee, said: “20% of our revenue is from the UK. We export throughout Europe as the tachograph is an EU legislative product.
“Turkey is also a key market as they adopt the EU digital tachograph and plan a retrofit programme for existing vehicles.
“We also export to Russia and Ukraine and saw high volume sales in these markets until this year, when the political instability affected our exports.”
She was speaking as Stoneridge Electronics, services business of the year in The Courier Business Awards, delivered an improved performance in results for the last year.
Turnover was up 2.1% at £18 million from increased sales in Europe, and an operating loss of £496,000 in 2012 became a profit of £63,000. The company recovered from a 2012 pre-tax loss of £626,000 to a loss of £52,000 in 2013.
The accounts also cover branches in France and Spain, and Amanda said the aftermarket division has been profitable for 10 years.
Director Peter Kruk said 2014 and 2015 preliminary sales forecasts reflect an increase in revenue, and the company is expected to generate positive cash flows and net income on its own account for the foreseeable future.