The company is already one of BSW’s biggest customers, but says that the new arrangement formalises and develops their trading relationship, and will secure its supply chain as the economy recovers.
“During the recession, when construction and manufacturing sectors were depressed, supply of home-grown material was plentiful and the market became accustomed to higher quality, value engineered products,” said David Lee, who took up the role of manufacturing division director at Scotts earlier this year. “As we move forwards, demand for these higher quality, bespoke specifications, and shorter lead times, will be the norm, and we are also now competing against producers of biomass energy for raw material, increasing pressure on supply. We must be able to respond to customer requirements and the partnership with BSW, ensuring security of supply and shorter supply chains, will be instrumental in our success.”
“The strategic partnership will assure customers that we can continuously supply pallets that are made with good quality home-grown timber, when supply to the general market may be constrained,” added Scott Pallet managing director Alan Gibson.
BSW chief executive Tony Hackney also welcomed the deal.
“While the dynamics of the timber market continue to change, we’re keen to bring stability to our customers. Our strategic approach with Scott will ensure efficiency and flexibility and a better service to their pallet division.”
Scott Pallets, which stressed that it will also maintain timber purchasing through other timber suppliers, is predicting a manufactured sales increase this year of 14%, with further growth going forward.
Scott Group says its latest growth in the UK and into Europe make it the latter’s fastest-growing packaging provider. Among latest developments is the multi-million pound development of its Port of Burntisland pallet plant, and further spending to enable its Huntingdon site to meet increasing demand.
