Asda has awarded Clipper a ten year contract to provide logistics operations for the George clothing business from its new £40m distribution centre at Wynyard near Teesport.
Clipper has held the contract for the George business since 2009, handling some 55 million units per year from its current deconsolidation centre in Darlington.
Operations will transfer to the new premises when it opens in August 2012, and is expected to create hundreds of jobs.
The facility is being designed to suit the contract, with a three-tier hanging garment mezzanine and hanging conveyors.
The contract will use over 600,000 sq ft of the warehouse space. The facility has a footprint of 350,000 sq ft, but operational space will be well over 1 million sq ft including mezzanines.
Ian Stansfield, distribution director at Asda, said: “Clipper has proven itself to be an invaluable partner to our business and the success of the bespoke solution it created in the North East in 2009 has brought about significant cost and efficiency savings to our operation.
“On the strength of this success, and our growing clothing business, we have taken the unprecedented step of signing this ten year contract for Clipper to provide portcentric solutions at the new Clipper Wynyard Portcentric Centre.”
Steve Parkin, chairman of Clipper, said: “Our belief that portcentric solutions are integral to the future of the retail logistics industry is represented by our £40m investment in this new super-centre for Teesport.”