TOG forges lengthy ICI deal
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ICI Paints has chosen TOG as its long-term logistics partner, awarding it a contract worth £150m. The agreement involves taking over ICI's warehousing at Stowmarket, Suffolk, and Goole, Humberside.
The eight-year deal is unusually long for a logistics contract because it is linked to the leases on the warehouses which are being extended to take increased business. An extra 50 warehousing and transport jobs will be created. Apart from delivering to more than 3,000 outlets nationwide, TOG is also providing labelling, packing and paint mixing.
David Maycock, ICI Paints' distribution manager, said TOG had been involved with the corn pany since it began outsourcing the warehousing and distribution of all its brands in 1995. "We have tried to do it in a gentle way, doing it slowly across these businesses."
TOG already has a £35m, five-year contract with ICI Paints in France and is evaluating its supply chain needs in eastern Europe.