News - 10 March 2010

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

Wincanton 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.

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