Trio of paper and packaging renewals for C M Downton

Leading UK logistics company C M Downton has secured contract renewals with three major paper and packaging industry clients, worth around £3.5m a year.

Scandinavian paper manufacturer Holmen Paper has renewed its contract with Downton for a further two years following a competitive tender.  The contract sees Downton handling the movement of all products coming into Sheerness Docks from its Scandinavian paper mills, distributing to Holmen’s customer base across the Midlands and the South of England.

Downton’s contract with newsprint and magazine paper manufacturer Norske Skog has also been renewed following the Norwegian company’s annual logistics contract review.  The contract is for national distribution to the UK’s major print houses.  Like Holmen, Norske Skog’s products are brought into the UK from its Scandinavian manufacturing sites through Sheerness Docks.

The third contract is with RPC Promens – one of the world’s leading manufacturers of plastic packaging products for the FMCG sector and part of the RPC Group.  Following a competitive tender, Downton’s contract has been renewed on a three year deal worth over £4m.

The contract sees Downton handling all logistics operations out of RPC Promens’ UK manufacturing hub in Deeside.  In addition to managing the movement of products out to customers across the UK, Downton has a team permanently based at Deeside and is also now running the on-site shunting operation.  Plans are also being put in place to introduce longer-length trailers to the operation – just one of a number of new innovations being considered across the extended contract.

Andy Downton, managing director of Downton, said: “We finished 2015 strongly with a number of contract wins and extensions and we’ve kicked off the new year in similar fashion – securing important renewals with three key customers.  Paper, packaging and manufacturing in general are strategic growth areas for Downton and we fully expect to push on from this early success as we continue through the year.”

Downton reported strong levels of growth in its last financial year. Total revenue rose to £113.5m for the year ending 30 June 2015, up 7.7 per cent on 2014.  Pre-tax profit was up 8.8 per cent; from £4.7m in 2014 to £5.1m in 2015.

In November 2015 Downton secured a series of food industry contracts worth £2m a year; with organic product company Pukka Herbs, salt manufacturer Ineos Enterprises Group and leading snack products manufacturer Kolak Snack Foods.

Last year also saw a major investment by Downton in its own infrastructure, with £13m spent on new fleet of trucks and trailers, £2m invested in trailer tracking and traffic management systems, and new warehousing and office facilities purchased near the company’s Gloucestershire headquarters.