APS in £20m deal with consumer goods giant

Apr 14 2008 by Chris Knox, The Journal

A PACKAGING company has secured a £20m deal with consumer goods giant Procter & Gamble (P&G), which will see it employ up to 250 staff at one of the consumer goods giant’s sites in Essex.

Blyth-based APS will reduce its transport costs by employing staff from the surrounding area to package promotional products, gift sets and displays for P&G over a period of two years, with the option of a two-year extension.

The deal is also part of efforts by P&G to reduce its carbon footprint and follows another deal with APS, which saw the packager create 30 jobs at the end of last year in order to produce fragrance box-sets in time for Christmas.

It is the first time in APS’ 22-year history of working with P&G that it has employed staff at one of the firm’s sites.

Judith Leighton, APS managing director, said: “This will be a business within a business and we are creating a management structure to be able to manage it like a satellite firm.

“What we have come up with is a change in our business model and will send a ‘hit squad’ to the customer’s site rather than doing the packaging in Northumberland.

“This not only helps us to reduce the cost of moving the products backwards and forwards, but also helps the client become environmentally efficient.”

The firm now expects to increase its turnover from £10m to £15m by 2009 as well as grow its 300-strong workforce at Blyth.

Chris Pygall, who was brought in as chief executive in November 2006 after helping Newcastle-based print company Dataform grow from an £11m business into a £40m firm, said: “This contract is an illustration that we are still delivering to the highest level and will continue to do so.”

This helps us reduce the cost of moving products backwards and forwards, and also helps the client become environmentally efficient