£112m Contract Extensions

RNS Number : 3269I

Wincanton PLC

10 March 2010

 



For Immediate Release

10 March 2010

Wincanton plc

("Wincanton")

Wincanton strengthens its petroleum and chemical gas distribution business with £112m extensions to its contracts with Chevron and Air Products

Wincanton, the leading European provider of supply chain and business outsourcing services, has strengthened its relationship with two of the UK's biggest petroleum and industrial gas suppliers through extensions worth £112m to its distribution contracts with Chevron and Air Products.

Chevron

The Chevron contract extension, worth £60m over three years, reinforces Wincanton's status as Britain's market-leading petroleum distributor and continues its 17-year association with Chevron.

Wincanton will continue to operate the contract from Chevron's network of UK terminals, transporting over nine billion litres of fuel over the lifetime of the agreement to Texaco-branded petrol stations across the UK.

In 2009, Wincanton carried over three billion litres of fuel and travelled 15.6 million kms for Chevron, without a single lost time injury.

Air Products

The Air Products deal, worth £52 million over three years, sees Wincanton extending its long-standing contract to carry bulk liquid nitrogen, liquid oxygen, liquid argon and hydrogen gas for the manufacturing industry and for the growing medical market, which includes hospitals and clinics.

Sixty Wincanton-operated road tanker vehicles and 120 drivers, working round the clock, will deliver 80,000 tonnes of gas every month from seven Air Products terminals in the UK, making around 100 deliveries every day.  

Commenting on the contract wins, Wincanton's Chief Executive, Graeme McFaull, said: "These new contract extensions are testament to the continuing strength of Wincanton's core markets in the UK. Cost savings and productivity improvements remain at the top of our customers' agendas and we continue to work proactively with them to identify and deliver significant financial and operational benefits."

"Transporting fuel and liquid gases requires the highest safety standards, and we are proud of our outstanding safety record. Wincanton operates a programme of continuous improvement that includes a driver training programme that is the envy of our industry, with over 3,000 drivers now holding an NVQ driver qualification."

The renewals are further confirmation of Wincanton's market-leading position in the sector and follow receipt of Chevron's 'Most Admired Carrier' award for Europe, Africa and Pakistan - the first European company to receive this award.

For further enquiries please contact:

Wincanton

Graeme McFaull, Chief Executive

Gerard Connell, Group Finance Director                        [phone]

Buchanan Communications                                   

Charles Ryland / Jeremy Garcia / George Prassas       [phone]

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Wincanton plc - leading supply chain solutions

Wincanton is a European leader in the design and delivery of advanced supply chain solutions and business outsourcing services. It employs 30,000 people across Europe, producing an annual turnover of over £2.36bn / €2.85bn, and offers a broad spectrum of services that enable clients to optimise their logistics requirements at local, national or regional level.

Serving some of the world's leading companies, Wincanton offers extensive experience in many market sectors, including automotive, chemicals, consumer goods, construction, defence, food service, high tech, industrial, energy & petroleum and retail.

Wincanton is focused on operational excellence, continually striving to provide value and product leadership through a detailed understanding of companies' requirements.  The results are solutions that allow customers to focus on their core business. Warehousing solutions are tailored to requirements on a dedicated, shared-user or networked basis, while transport is provided utilising road, rail, air and intermodal systems. Further information on Wincanton's unique achievements and competencies can be found by visiting www.wincanton.co.uk

Air Products 

Air Products (NYSE:APD) serves customers in industrial, energy, technology and healthcare markets worldwide with a unique portfolio of atmospheric gases, process and specialty gases, performance materials, and equipment and services.

Founded in 1940, Air Products has built leading positions in key growth markets such as semiconductor materials, refinery hydrogen, home healthcare services, natural gas liquefaction, and advanced coatings and adhesives.

The company is recognized for its innovative culture, operational excellence and commitment to safety and the environment. In fiscal 2009, Air Products had revenues of $8.3 billion, operations in over 40 countries, and 18,900 employees around the globe.

Chevron

Chevron is one of the world's largest integrated energy companies. Headquartered in San Ramon, California, it conducts business in countries all around the globe. It is engaged in every aspect of the crude oil and natural gas industry, including exploration and production, manufacturing, marketing and transportation, chemicals manufacturing and sales, geothermal, and power generation. The company is also investing in renewables and advanced technologies.

The company's diverse and highly skilled global workforce consists of approximately 62,000 employees and about 5,000 service station employees.

In 2008, Chevron produced 2.53 million barrels of net oil-equivalent per day. About 75 per cent of that volume occurred outside the United States in more than 20 different countries. Chevron had a global refining capacity of more than 2 million barrels of oil per day at the end of 2008.

The company's marketing network supports more than 22,000 retail outlets on six continents.

www.chevron.com

 

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