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P WAREHOUSING

5th February 2009
Page 8
Page 8, 5th February 2009 — P WAREHOUSING
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Stobart deal is bitter-sweet

STOBART GROUP has signed a 10year contract to provide warehousing for Nestle and at the same time is closing its Scunthorpe operations.

The seasonal confectionery contract — worth about £110m over the 10 years — will be based at Stobart's distribution centre in Bardon, Leicestershire, and is predicted to create 40 jobs.

However, 40 jobs are set to go from its Scunthorpe operations, a site it acquired from Innovate Logistics when Stobart bought it out of administration last year.

Following what Stobart describes as "a detailed review of its customers' warehousing requirements", the Scunthorpe site will close when the lease expires at the end of April 2009.

The operations at Scunthorpe, including seasonal and export product storage, will transfer to Bardon. In a statement, the company says: "This decision is in no way a reflection on the employees in Scunthorpe, who have given a first-class service."

The 40 redundancies will be phased in as export products transfer to Bardon. All Easter 2009 deliveries to customers will take place from Scunthorpe, while Stobart works in consultatIon with Nestle during the transition.

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