Exel plc won the sole UK and Northern Ireland supply contract for BP Oil UK’s third party fuels distribution. The contract is valued at £80 million over the next five years. The contract comes into effect on 1st July 2000 and includes the supply of distribution to BP fuel customers nationally. Exel’s specialist division for distribution in the chemical, petroleum and edible market sectors is responsible for the contract.
Exel also works on other parts of BP’s business, including delivery of aviation fuels for Air BP and LPG for MacGas, as well as working for BPs chemicals division in the UK and the US.
The contract win comes soon after Exel launched a distribution company in China. The launch is in association with local operator Chengtong Distribution Group and is the result of 12 months of discussions between the Chinese government, Chengtong and Exel Asia. The distribution company will focus on retail, automotive, chemical, consumer and electronics sectors.
Exel is driving for global expansion and after its recent merger announcement with MSAS is well positioned to do this. China represents a huge and relatively underdeveloped market in terms of logistics expertise and Exel has made a strategic move, before many other Western companies, to take advantage of the massive opportunities in China. Datamonitor predicts that Exel will remain at the top of the logistics ladder for the forseeable future.