Leading laminate surface manufacturer Formica Group has signed a new deal with Port of Tyne to move its UK import operations to South Shields bringing around 500 containers a year into the Port.
Formica Group, based in North Shields & Newton Aycliffe, supplies branded surfaces for worldwide commercial and residential markets and imports paper reels from Savannah in the US.
The paper reels will be shipped from Savannah to either Felixstowe or Rotterdam before being transferred to South Shields on coastal feeder vessels and then moved into the Port of Tyne’s deep-water container facility.
The containers will then be unloaded into a port centric warehouse, which will store about 2,500 tonnes of paper before being called off for delivery on a Port of Tyne vehicle to Formica’s North Shields production site.
Port of Tyne’s Commercial Director Richard Newton, said: “Our close proximity to Formica’s production site in North Shields will improve turnaround times, increase efficiency and use considerably fewer road miles, saving time, carbon and money.
“Our award winning customer service, which achieved 93% satisfaction rate, was critical in winning this business; we are in constant dialogue with our customers and form strong partnerships. Combined with our port centric approach, which forms an integral part of our customers’ supply chain, it gives customers one less thing to worry about. We are delighted to secure this deal and look forward to working with Formica.”
Dan Baker, European Category Manager at Formica Group, said: “Sustainability was a crucial factor in choosing to work with the Port of Tyne, which has allowed us to save about 40,000 road miles per year. Environmental sustainability is increasingly important for Formica’s supply chain.”
Formica Group’s Coast Road Factory in North Shields, which recently underwent a multimillion-pound renovation, employs more than 400 people and serves as the company’s European headquarters.
This news comes after the Port of Tyne recently expanded capacity at its container terminal by 40% to handle a throughput of around 100,000 TEUs per year (Twenty Feet Equivalent Units).
Port of Tyne also gained Authorised Economic Operator (AEO) status, an internationally recognised quality mark, simplifying customs processes and certifying that its role in the international supply chain is secure.