Northumberland-based sawmiller A&J Scott Ltd has bought Northern Pallet Services Ltd (NPS) of Middleton, Manchester for an undisclosed sum.
NPS, which is based close to the M62 and employs more than 30 people, was manufacturing 15,000 pallets per week.
Since the acquisition production has already been increased to 20,000 and a further 10,000 per week will be transferred from A&J Scott’s Wooperton site.
A&J Scott intends that the majority of its own pallet manufacturing business – approximately 15,000 pallets per week – will be carried out by NPS and expects the current turnover to increase by 50% over the next 12 months, creating more jobs in the Middleton area.
To enable NPS to cope with the proposed 35,000 pallets per week throughput, A&J Scott plans to install further pallet-making equipment at the site next year.
Pallets which require kiln drying, and some others destined for Scotland, will continue to be manufactured at the Wooperton site.
The acquisition makes economic sense as a large proportion of A&J Scott’s customer base is located in the north of England and it is more cost-effective to manufacture nearer to source. The area is also a ready market for the pallet timber produced at Wooperton.
Managing director Andy Scott said: ‘We do not expect our own turnover or staffing levels at Wooperton to fall. It is our intention to increase the sawmilling part of the business which produces fencing and pallet components.
‘Recent investments include a £200,000 upgrade in one of our sawmills and a £1.4m investment in a new grading line.
‘A&J Scott Ltd is always looking to expand and invest in the latest up-to-date equipment. We are already thinking ahead to the next investment. Watch this space!’
