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Chemicals contract

25th June 1992, Page 8
25th June 1992
Page 8
Page 8, 25th June 1992 — Chemicals contract
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Which of the following most accurately describes the problem?

• McKelvie, the Paisley-based consumer and industrial specialist, has won a five-year contract to haul for W Canning Materials, a chemicals manufacturer which previously ran its own transport.

Redundancy notices are believed to have been given to 15 drivers at the Birmingham-based manufacturer which will hand the work to McKelvie at the beginning of September. McKelvie is expected to put 16 drivers on to the nationwide contract for primary trunking and secondary distribution. It will use Canning's warehouse, but is expected to use its own trucks to carry the hazardous and packaged chemicals.

Canning is thought to have chosen to contract out to save costs and to have felt that McKelvie, which already has a contract with chemicals giant ICI, would offer a better service to its customers. McKelvie has 150 trucks and 180 employees at sites in Paisley, Warrington and Goole. It is part of the Transport Development Group.

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Locations: Birmingham, Paisley

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