11th Jan 2005 07:00
Wolseley PLC10 January 2005 Wolseley plc £100 million distribution centre investment for Wolseley UK to facilitate product expansion, improve customer service and reduce costs Wolseley plc, the world's largest specialist trade distributor of plumbing andheating products and a leading supplier of building materials to professionalcontractors, announces a £100 million capital investment programme for its UKdistribution network. Wolseley's investment in its supply chain and distribution centre network hasbeen an important factor in driving growth and margin improvement, particularlyin the UK and USA, in recent years. As the Group's experience of supply chainmanagement for the building materials sector has increased, the distributionstrategy has evolved to the extent that new distribution centres have increasedin size and have benefited from increased automation. Wolseley companies havealso been able to benefit from best practice sharing in developing theirinfrastructure investment. Wolseley's announcement for the UK today is the nextstep in that process and is an important part of the European supply chainstrategy. Furthermore, this investment also marks the continuation of Wolseley UK'srestructuring and rebranding programme, announced in spring 2004, which isstreamlining the company's operations and maximising the efficiencies across allseven of its operating brands - Plumb Center, Build Center, Hire Center, ClimateCenter, Parts Center, Pipe Center and Drain Center. The initial plans include building a new 340,000 sq ft (31,586 m2) nationaldistribution centre in Leamington Spa, on a site adjacent to Wolseley UK's newheadquarters, and to opening another regional distribution centre in the northwest of England in 2006/7. Building work in Leamington Spa will commence as soonas planning permission has been granted, with the expectation that the newnational distribution centre will open by the summer of 2006. The new national distribution centre will serve all of Wolseley UK's brandsworking alongside the company's existing regional distribution centres inMelmerby (North Yorkshire), Worcester and Marston Gate (near Milton Keynes) pluslocal bulk distribution sites across the UK. The additional distribution network capacity will assist in meeting the growingdemand for Wolseley UK's services through all of its brands, across all industrysectors. The new distribution centre network will enable a wider range ofproducts to be held, provide better service to branches and customers and lowercosts through a fully integrated supply chain and improved logistics management. The £100 million cost of the programme will be met from Wolseley's existingresources with the bulk being incurred in the next three financial years. Theprogramme is expected to benefit earnings in the year ending 31 July 2006 andthereafter. Charlie Banks, Group Chief Executive of Wolseley said: "This £100 million infrastructure investment demonstrates a long-term commitmentto growing our business and sharing best practice across the Group. Ourdistribution centre network and supply chain management in the UK and USA havebeen an integral part of Wolseley's success and we are confident that they willprovide us with a competitive advantage in the future. This investment willallow us to continue to meet rising customer demand while helping eliminateinefficiency from the construction supply chain." Press/Investor Enquiries: Wolseley plc 0118 929 8700Guy StainerHead of Investor Relations Brunswick 020 7404 5959Nina Coad Notes to Editors Wolseley plc is the world's largest specialist trade distributor of plumbing andheating products and a leading supplier of building materials to professionalcontractors in North America, the UK and Continental Europe. Group sales for theyear ended 31 July 2004 were approximately £10.1 billion and operating profit,before goodwill, was £619 million. Wolseley has around 50,000 employeesoperating in 13 countries namely: UK, USA, France, Canada, Ireland, Italy, TheNetherlands, Switzerland, Austria, Czech Republic, Hungary, Luxembourg andDenmark. Wolseley is listed on the London and New York Stock Exchanges (LSE:WOS.L, NYSE: WOS) and is in the FTSE 100 index of listed companies. Wolseley UK Wolseley UK sits at the heart of the construction supply chain, providing thewidest range of construction products and materials available in the UK throughover 1,500 branches of Plumb Center, Build Center, Pipe Center, Drain Center,Climate Center, Hire Center and Parts Center. Its unique distribution system with multiple central feeder warehouses makes theWolseley UK distribution network more responsive and more flexible than anyother in its sector. This superior supply chain capability enables Wolseley UKto provide same or next day delivery of a vast product range through itsbranches, call centres and websites. Wolseley UK is committed to meeting customer needs by providing the rightproducts and services when and where they are needed, at competitive prices. Itscustomers are anyone who constructs and maintains buildings and range from thelargest construction companies to government organisations to self-employedcontractors. -- ENDS -- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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