Monday, August 22, 2011

Paper Chain Contract for Logistics Arm of Bibby Line

Northern Firm Takes on Spanish Based Packaging Deal
Shipping News Feature

EUROPE - Bibby Distribution, the supply chain and logistics arm of the Liverpool headquartered 200 year old Bibby Line Group, has expanded its interest in the paper and packaging logistics sector by securing a deal worth in excess of £40m by signing a contract with Spanish manufacturer and supplier of packaging solutions, SAICA.

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.

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. SAICA is a company which actively promotes its environmental sustainability and Bibby will be responsible for ensuring freight is carried in a responsible manner by operating a closed loop model utilising a single vehicle to fulfil the whole cycle of supply chain activity.

This means delivering newly manufactured products to customers, collecting the customer’s waste paper from site and feeding back into SAICA’s recycling division to complete the cycle. 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. The sheer volumes have meant that a recruitment-drive is now underway for personnel to fulfil activities in Partington, and Bibby will be transferring staff into their business from the operations at SAICA’s existing sites in the north of England.

The contract officially commences in January but activities will begin at the Partington site over the next few months. Alan Paterson, Bibby Distribution’s Operations Director commented:

“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. This contract 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.”

Photo: An aerial view of the Riverside Partington development in which SAICA has invested £290 million to build one of the world's most advanced recycled paper mills.