Zero Brexit impact for MCE Insurance as green parts division continues to grow
Despite the difficulties experienced by many UK-based exporters following the UK’s exit from the EU, MCE Insurance has reported that its growing green parts business has remained unaffected by new trading restrictions.
Green parts are individual components salvaged from written-off vehicles to be sold into the repair network and directly to consumers. Since April 2019, MCE has been actively engaged in this market selling salvage motorbikes and green parts across the UK and Europe, generating £1.5m of income from salvaged bikes and a further £300,000 from green parts.
Julian Edwards, CEO at MCE Insurance said that the trade in green parts across the Continent could prove to be a massive boon for the motorbike specialist in the coming years.
“It’s vital when you work in such a competitive market as ours, that you are able to generate sustainable alternative revenue streams and our foray into the green parts market in the last 12 months has shown that there is huge potential for us here.
“With all the headlines about companies experiencing trading restrictions post-Brexit, we weren’t quite sure what impact there would be for our young but growing green parts operation. Thankfully, it appears that not only has there been no impact, demand has remained consistent.”
Prior to Brexit, MCE exported approximately 25% of its 1,058 green parts to Europe, a percentage that has been maintained in the first quarter of 2021.
“Such has been the success of this part of our business, we are increasing our sales forecast from the £1.8m generated in 2020 to £5m annually. That is hugely significant and an excellent example of our ability to diversify our business model.
MCE Insurance expects to ship around 10,000 green parts and 2,500 salvage bikes per annum.
