Exel bids for can deal
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by Karen Miles • Exel Logistics is working to secure distribution of one billion tin cans a year for Carnaud Metalbox's food division in a three year, multi-million-pound deal expected to be signed in a fortnight.
As parent NFC announces disappointing third quarter results showing £766m pre-tax profits before exceptional items, and the City complains of few new business gains, Exel and Carnaud Metalbox continue to haggle over the cost of the contract.
The packaging company wants real cuts in its transport bill and is playing off Exel with northern haulier Eddie Stobart to obtain the cheapest rates. Meanwhile, Stobart is expected to secure the threeyear contract with Carnaud Metalbox's drinks division for distributing one billion cans from factories at Leicester and Botcherby in Cumbria.
This work is already carried out by Stobart and makes up around 40% of its business.
Exel already does some work for the manufacturer's food division, picking up cans from Carnaud Metalbox's Worcester • Since NFC chief
executive Peter Sherlock's resignation a fortnight ago, group share prices have dropped 15%. And it's expected that later this month NFC will be pushed out of the FTSE 100 index which indicates the overall performance companies.
plant. But if it wins all the food work, it will take additional cans from factories including Leicester, Wisbech and Arbroath in Scotland.
The transport of 80,000 tonnes of tin plate into Carnaud Metalbox's UK factories is also up for grabs and both companies are battling for this work.