Bibby Distribution seals 40 million packaging deal with Saica

Bibby Distribution has strengthened its foot-hold in the paper and packaging logistics sector by securing a deal worth in excess of 40 million. The contract is with manufacturer and supplier of packaging solutions, Saica, and follows a fiercely competitive six-month tender process. This included Bibby Distribution's bid team attending working sessions at the company's headquarters in Zaragoza, Spain.

Included in the contract are activities for Saica's Paper and Pack divisions which manage the manufacture of paper for corrugating and the development of packaging solutions to meet customer's bespoke requirements.

As part of the deal, Bibby Distribution will take-on all internal logistics activities at Saica Paper's new state-of-the-art paper mill in Partington, Manchester. This will encompass inbound and outbound distribution from the site. In addition, Bibby Distribution will also assume responsibility for Saica Pack's northern distribution operations from existing plants in Hartlepool, Ellesmere Port and Wigan.

"This is an important win for us that further demonstrates our extensive range of skills and services in the packaging sector; a marketplace which now forms a significant part of our business," said Alan Paterson, Bibby Distribution's Operations Director.

Bibby Distribution will be a key partner to Saica in its environmentally sustainable closed loop business model. The model ensures that vehicles are operating at maximum utilisation on both inbound and outbound journeys and minimising carbon emissions per tonne of paper produced and delivered. The closed loop model enables one vehicle to fulfil the whole cycle of activity, from delivering newly manufactured products to customers, to the collection of that customer's waste paper to feed back into SAICA's recycling division; restarting the sequence.

The mill operation in Partington alone will see Bibby Distribution collecting, transporting and processing 400,000 tonnes of paper reels and 450,000 tonnes of waste packaging per annum for Saica.

A recruitment-drive is now underway for personnel to fulfil activities in Partington, and Bibby will be welcoming staff transferring into the business from the operations at Saica's existing sites in the north of England.

"We have a similar mindset to Saica, which is also family-owned, and we are both heavily focused on building value for the long-term by providing flexible solutions tailored to the needs of our customers," added Mr Paterson.

The official commencement of the contract is set for January 2012, but the company says it is pleased to be supporting the opening of the new facility in Partington where activities will begin in the next few months.

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