Ma Manton pulls plug on its European chilled division
Page 6
If you've noticed an error in this article please click here to report it so we can fix it.
Eby MIAOW Perry
Leading transport and distribution firm Wincanton is to pull the plug on its chilled Continental division, which it once described as its "first foothold into Europe".
The aupsition of Rokold European Transport in 1998 was touted by the company as the first stage of a Continental expansion plan. It blames the closure on "the loss of two key contracts, the strength of the pound and other factors".
In a statement to CM, the firm plays down the closure: "Wincanton has been operating a small, 11-vehicle chilled haulage operation for the past three years. The management and clerical staff involved have been redeployed and all the 15 drivers have been offered alternative opportunities."
But when Rokold was bought three years ago it was running 42 trucks on UK and Continental work with a turnover of £12.5m.
A spokesman says that Wincanton is still looking across the Channel, but insists: "The type of operation here was never a key element of any expansion strategy."
He adds that Wincanton would purchase a Continental firm rather than run trucks on cross-Channel routes.
"The main thrust of the acquisition of Rokold was to integrate its chilled UK business into our chilled consolidation network," the spokesman says, adding that this has been done successfully.
However, an industry insider speculates that the business did not sit easily with the rest of Wincanton's contract-based work: "It's sad really that the big firms see a successful business like Rokold and think they can do a better job so buy it up. Just buying up the business is no guarantee that it's going to work."
Rokold, originally set up by Robin East (pictured), had been operating for 20 years before being bought by Wincanton. It had depots in Bicester and Upper Heyford, but following the acquisition it was run from Wincanton's Firms operating chilled distribution to the Continent have had a hard time recently because of the strong pound, foreign Competition and foot-and-mouth restrictions.
Nippress Continental and Dover-based Frigoline were notable casualties of the current economic Ornate (CM5-11 July and 9-15 August 2001).
• Earlier this year Wincanton demerged from parent company Uniq, formerly Unigate.