SCA re-structures in response to sales growth
Dec 08, 2004. SCA Timber Supply is restructuring its business responding to a doubling of sales in 18 months. Key elements of the re-structuring involve investing £1.1 million in a new high-speed wrapping line at Stoke; the announcement of a closer partnership with Severn Timber of Welshpool; moving a proportion of production from Warrington to Stoke-on-Trent, and closing its Warrington site.
Dec 08, 2004. /Lesprom Network/. SCA Timber Supply is restructuring its business responding to a doubling of sales in 18 months. Key elements of the re-structuring involve investing £1.1 million in a new high-speed wrapping line at Stoke; the announcement of a closer partnership with Severn Timber of Welshpool; moving a proportion of production from Warrington to Stoke-on-Trent, and closing its Warrington site.
The closure at Warrington has been brought about by the changing product developments and volumes required by SCA’s customers, in both the builders’ merchant and DIY retailing sectors. Warrington no longer has the capacity or equipment to cope with the continuing upsurge in demand. Some 26 staff are affected and are being given counselling and support in finding new jobs. A number may move to the Stoke site. The premises at Warrington are being sold to Peel Holdings plc in Manchester for an undisclosed sum.
Some planing capacity will be taken up at SCA’s existing planing facilities at Stoke. Additional capacity will be provided by partner companies, including Severn Timber, which have the volume capabilities to services SCA’s rapidly expanding customer base. An investment of £1.1 million is being made at SCA Timber Supply Stoke to provide a high speed wrapping line to assist SCA’s growth in finished, wrapped timber products. The line is expected to be operational by summer 2005.
Closer sales and production co-operation with Severn Timber is also announced, providing SCA with a strategic partner close to its headquarters. The sales teams at both companies will work together in marketing a larger range of products to a wider range of customers. The agreement includes continuing to service the mini-pack and bulk machined markets, whilst also increasing the capacity for regularised sawn timber packs for DIY and other customers.
Rob Simpson, managing director of SCA Timber Supply comments: “This is a positive development for SCA and its customers, though of course we recognise the contributions of our Warrington staff over recent years to our current success. We will give them all the assistance we can in finding new positions.
“Working more closely with Severn Timber will enable us to offer highly integrated supply chain management services to our ever more professional customer base, which has high expectations of its suppliers. The wrapping line investment will enhance our ability to present sawn and finished products on customers’ shelves, enabling them to capture more sales.”