Logistics group Wincanton today said it had signed a deal with GlaxoSmithKline that will overhaul the drug company’s supply chain in the north of England.
Under the extension of its existing contract, Wincanton will design and run a new distribution centre in Middlewich, Cheshire.
This will allow Glaxo to comply with changing rules governing the number of hours drivers are allowed to spend on the road.
Glaxo’s existing centre is in Brockworth, Gloucestershire, England making it harder to reach certain parts of the UK under the new laws.
The Middlewich centre will be used for Glaxo’s consumer and nutritional healthcare business, which makes products including Lucozade, Aquafresh toothpaste, Panadol and Nicorette.
Wincanton declined to say whether the move would create jobs or to give a value for the 10-year contract.
One of Glaxo’s customer service directors, Brian Kennedy, said: “By opening a new base in the north, we are able to accommodate future growth and can also create a more logical footprint for the UK supply chain ahead of the impending Working Time Directive (WTD).”
Wincanton, whose clients include Tesco, Waitrose and Britvic, became the country’s second biggest logistics firm when it bought Trans European from P&O in 2002.
The purchase also put it among the top three logistics companies by turnover in Europe.
It now employs 24,000 people in 15 countries and its last financial year, Wincanton saw pre-tax profits rise to £30.6m (€44m) from£28.3m (€40.7m).
Other customers include B&Q, Comet, Princes Soft Drinks and Dairy Crest.