Business

Americold enters long-term partnership with Culina to run Lurgan transport operation

Americold has entered into a long-term partnership with Culina Group to run its Lurgan transport operations
Americold has entered into a long-term partnership with Culina Group to run its Lurgan transport operations

COLD storage business Americold has entered into a long-term partnership with Culina Group to run its Lurgan transport operations.

The move is part of a restructuring of the business, revealed in the Irish News on Wednesday and which could lead to a number of job losses at the company, which was previously known as Agro and, before that as Sawyers Transport.

In a letter to staff yesterday, which has been seen by the Irish News, Americold's Europe managing director Hans Kroes said that as part of the Culina partnership, subject to a full consultation process, "some colleagues associated with the transport operation may transfer across under TUPE regulations".

Mr Kroes said: "Americold will strive to ensure that concerns are minimised through a thorough consultation process in partnership in partnership with Culina Group. During the days and weeks ahead, the company will share information as and when it becomes available.

"It is envisaged that the consultation period will conclude no later than the end of July and after full Americold executive leadership approval."

With an overall turnover of more than £2.2 billion, a combined workforce of 22,000 staff, around 20 million square feet of warehousing and a joint fleet of more than 5,500 vehicles, Culina Group a market leading position in the FMCG logistics sector.

Culina has an operation close to Americold at Silverwood business part in Lurgan.

Mr Kroes added in his statement: "Culina Group are one of the UK's leading logistics businesses and this partnership will allow Americold to focus on our core business in frozen warehousing.

"Operational colleagues from Culina will be on site at Lurgan supporting Amercold during the consultation process, and our own senior management team will als be on site this week to answer any questions that may arise as we work through the transfer process."

As part of the restructuring at Americold - which employs around 400 people - a number of employees, thought to be as many as 20, were called in one by one by management on Monday morning and told they were being made redundant or were temporarily suspended.

They were reportedly told to leave their belongings; keys, laptops, phones and go.

When contacted by The Irish News, Americold said it was making no comment.