Stobart wins £110m, 10-year Nestlé contract

Commercial Motor
August 11, 2010

Stobart Group has signed a 10-year contract to provide warehousing for Nestlé and at the same time it 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.

Sean Brogan, business development and operations director at Stobart Group, says: "No extra trucks will be based at Bardon but over time we expect to employ an additional 40 people."

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 it describes as "a detailed review of its customer's 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.

A statement from the company says: "This decision is in no way a reflection on the employees in Scunthorpe, who have given a first-class service over many years."

The 40 redundancies will be phased over a period of time as export products transfer to Bardon. All Easter 2009 deliveries to customers will take place from Scunthorpe, while Stobart works in consultation with Nestlé during the transition.

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