Middlewich DC to dose, with 400 jobs on the line
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clorninic.perryiarbi,conk and ch risto ph er.watto rnarhi.co.uk SUPERMARKET TESCO has continued the shake-up of its distribution network by revealing that it plans to close its Middlewich, Cheshire DC, with the potential loss of up to 400 warehousing jobs.
The news comes hot on the heels of its proposal to close its Middleton, Manchester DC, with volumes migrating to a new site in Widnes, Cheshire.
Middlewich is no stranger to controversy either, having had the transport operations transferred to Eddie Stobart in 2008, despite some resistance from drivers.
Tosco says it has started a 90-day consultation with staff at the Middlewich site. A statement continues: "We regularly review our distribution network to ensure it is providing the best service.
"After the latest review, we've decided to close the Middlewich DC and trunking station, subject to consultation with the trade union, with these operations moving to a larger distribution centre in Goole, East Yorkshire.
"Tesco will be creating more than 2,500 new jobs in the NorthWest over the next 12 months, and all staff affected by the proposed changes will he offered other opportunities with Team."
Meanwhile, Stobart Group is to sell its 528,000fe DC in Widnes which is poised to become the new northern distribution centre for Tesco's fresh operations to Legal Se General Assurance (Pensions Management) for ifilm.
The deal, which could rise to £62.5m depending on conditions, will be used to cut Stobart's debt. which currently stands at 1=45m.
Last month, it was revealed that Tesco would close its 200,000ft2 warehousing operation at the Middleton 2 DC on the Stakehill Industrial Estate.run byWincanton, ahead of taking a lease at the 3MG site in Widnes (CM 25 February).
Andrew Tinkier. chief executive of Stobart Group, says the firm's strategy is to invest in assets to develop existing and new customer relationships and realise the value of the asset at a profit to reinvest elsewhere in the business.
"At Widnes, this has enabled us to gain a long-term distribution contract for Tescc.) and to increase the support development for the next phases of the inland port facility," he adds.
The sale will also involve Stobart Ports division entering into a 25-year sale and leaseback deal on the inland port terminal, the former O'Connor Transport site, as well as developing the remaining 95 acres of the site.
Port throughput is forecast to grow as its rail service for fresh produce from Valencia in Spain is extended through to Widnes.