Massive haulage plans by Unilever
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International hire and reward operations will be integrated
by CM reporter • A massive expansion of transport operations to exploit market potential in the UK and the EEC is planned by the Unilever Group — Europe's second largest industrial concern.
And it could pose a stiff threat to existing operators in both Britain and on the continent.
Following a policy decision by the Anglo-Dutch board, the group's transport interests in various countries are to be integrated under a central co-ordinator, Commercial Motor was told this week.
Transport has so far been regarded as a service operation for Unilever products. But the multi-million pound company now plans to develop it as a major part of the group on the same profit basis as its soap, margarine, and food products. Unilever has transport subsidiaries in Britain, France, Germany, Holland, Belgium, Italy and Spain, which operate heavy lorries, delivery vans, depots, warehouses, Rhine barges and coasters. These companies have a turnover of £60m a year and are reputed to represent the biggest transport operation by any manufacturer in Europe.
Responsibility for the formation of the transport co-ordination lies with Unilever director Mr J. J. H. Nagel.
Once organized, overall control of transport will go to Mr Medwyn Ormerod, former chairman of SPD (standing for "Speedy prompt delivery"), the largest Unilever transport subsidiary in the UK. He is due to take up his post on January 1, 1974.
He told The Times newspaper at the weekend that the move made sense in the light of expansion and growing sophistication of the European transport industry with its rapid growth in cross-frontier traffic.
"Transport is a growing market, with scope for new techniques and more sophisticated chains of distribution," said Mr Ormerod. "We shall not be marketing a comprehensive system throughout Europe; we shall be developing flexibly and selectively from our bases as market opportunities arrive."
In the UK, a big marketing campaign to expand SPD's tailor-made distribution service to shot* supermarkets, schools, hospitals and other customers is already under way. Turnover is expected to double to an annual f40in within five years.
Mr Ian Daniel, SPD chairman, commented: "As transport gets more complex, specialized and costly, big firms which previously ran their own are increasingly havinE to choose between getting in deeper oi getting out. We have decided to stay in and develop."