Packaging firm Macfarlane is setting up a new Scottish distribution hub in a tie-up with logistics group Bullet Express.
The move follows Glasgow-based Macfarlane’s £1.8 million acquisition in May of the packaging business of local firm Edward McNeil and sees it consolidate the operations of the McNeil business with its existing distribution centre, currently based at Linwood, into a single facility.
The new operation, at Baillieston in Glasgow, will complement Macfarlane’s other Scottish distribution centre in Inverness.
The latest distribution hub will take up 28,000 square feet of Bullet Express’s overall 190,000sq ft of storage and distribution space at Baillieston, close to the arterial motorway network.
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As part of the deal, Bullet Express, which provides transport and logistics services to more than 400 customers UK-wide, will source all of its protective packaging from Macfarlane’s packaging division. Meanwhile, Macfarlane will utilise Bullet Express’s logistics services to support its existing distribution service.
The ten-year deal means that more than 75 per cent of the 21,000 “pallet spaces” within Bullet Express’s new Baillieston facility are now let.
David Machin, group regional director of Macfarlane Packaging, said: “Investing in this move underlines our commitment to growing our protective packaging distribution business in Scotland.
“Our new facility at Baillieston will accommodate our growth plans at a location that is well situated to more effectively service our customer base in Scotland.”
David McCutcheon, managing director of Bullet Express, added: “We offer Macfarlane Packaging a warm welcome to our new site at Baillieston. Macfarlane was our first customer when we set up business in 1990 so having them on-site is particularly significant.
“I have enjoyed working with the Macfarlane team to make this deal come alive and we look forward to supporting them going forward.”