US Utility joins York for attack on Euro market
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by Bryan Jarvis • American reefer manufacturer Utility Trailers has joined forces with York Trailers to form a new company, Utility International. The US giant, which claims to be the world's largest builder of reefers and third overall of trailers, will use the Northallerton site for its attack on the UK and Continental markets.
The first stage of Utility's £7m investment includes a new reefer body production line, a full upgrade of York's paint facilities and a new curtainsider production line.
California-based Utility exhibited a Euro 2000 tri-axle reefer weighing 7,550kg and built for European use at the 1996 Hanover truck show. But sales director John Hope says the Northallerton-built reefer will use European components and will be competitive on weight and price.
Utility's main competition will be UK market leaders Schmitz Cargobull and Gray and Adams.
Gray and Adams declines to comment but Schmitz Cargobull sales and marketing director John Whittaker says: "There isn't room for another major player in the UK. Obviously I'm concerned about any new competition but if they take any of our sales it could lead to a price increase. Prices are as they are at the moment because of the volumes involved.
"It's a completely different product to what the UK is used to," he adds. "I wouldn't like to have to sell it myself, but good luck to them."
Utility International will con
tinue to build a full range of York products at the North Yorkshire factory, including Classic curtainsiders as well as the upgraded ZT range which becomes available next month.
Hope is also responsible for establishing a European-wide dealer/distributor network. He predicts that the expansion will create more jobs at Northallerton and will enable Utility to make a serious impact on European markets.