ICI distribution buy-out
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• Two new managementowned companies have taken over ICI's distribution operations at Billingham and Severnside.
The multi-million-pound deals follow months of talks between ICI and its transport managers who wanted to buy out their "uncompetitive operations" (CM 28 July-3 August 1988).
Imperial Tankers has taken control of ICI (Chemical and Polymers), Billingham tanker fleet, depot and workshop faciltiles. Since the buyout was announced, 30 employees have left the firm or have been transferred to other ICI depots. Nearly all of the remaining staff of 60 have taken up an offer to buy shares in the new company.
Former transport manager John Robinson is now managing director of IT. He says the company will be diversifying into other bulk liquid markets, especially petrol, with new contracts expected within a few weeks. Trading started on 3 April, and Robinson expects the IT operation to double in size within five years. More than 30 new vehicles will be acquired during the three-year ICI contract.
ICI's Severnside distribution operation has been taken over by management-owned Chemichaul. Severnside and Billingham had originally planned to combine the buyouts, but drivers at the Bristol depot pulled out of a joint takeover.
Chemichaul, which is headed by Brian Nichols, will operate 70% of ICI's Severnside distribution. Since March, Suttons of St Helens has been transporting an increasing proportion of ICI chemicals from the depot.
The workforce has been halved from 28 to 14 and the depot will be leased by Chemichaul from ICI. By the end of May the entire fleet of 23 vehicles will be replaced, mainly with Scanias.