Updated: Jan 20
Mars UK has struck a £350 million deal which would see a huge warehouse built near East Midlands Airport. The firm has signed a deal with logistics firm DHL, which Mars says would cut a million miles from its annual haulage footprint.
The new sites, based in the Midlands and East London, represent an investment of £350m and have been designed with sustainability at front of mind. The project will reduce Mars’ outbound logistics carbon footprint in the UK by 7.7%. The buildings themselves will be partially solar powered and rated in the top 1% of non-domestic buildings in UK environmentally.
The consumer giant reveals a new partnership with DHL that will see the construction of two state of the art facilities and deliver annual outbound logistics CO2 savings of 7.7%. Photo: Mars UK.
Tim Walker, Supply Chain Director at Mars UK said: “Our partnership with DHL will deliver a world class logistics operation that is sustainable, smart and agile. What is good for our business is also good for the planet. This project is a meaningful step in our sustainability journey as we look to create the world we want tomorrow – which we know starts with how we do business today.”
Mars, which has bases in Melton Mowbray & Waltham have spent £350 million on the new project. Photo: Mars.
Mars UK transport over 1.2 million pallets of their products every year – which, if you stack those pallets on top of each other, is the equivalent of shipping the height of Mount Everest every other day. The new logistics operation will remove a million miles a year from roads – which is 40 times around the world or 8,547 times around the M25.
Mars factory in Melton Mowbray which produces thousands of cans and pouches of petfood per month. Photo: File Pic.
Jim Hartshorne, Managing Director, Retail & Consumer & Ireland, DHL Supply Chain said: “We’re delighted to be extending our global partnership with Mars in the construction and management of these sites. Our shared environmental commitments are supported by this investment and we are creating long term, exciting jobs in both of these communities. This project will be the foundation of the UK logistics chain for Mars for many years to come and we are incredibly proud to be selected to lead in this project.”
The two purpose-built depots, ‘East Midlands Gateway’ and ‘London Thames Gateway’, will be operational in the spring of 2022 and 2023 respectively. The sites will have a combined square footage of over a million feet and they will both have state of the art high bay facilities which include innovative automated pallet storage.
Mars UK currently use storage facilities at Asfordby Storage and Haulage and Mailway in Saxby Road, Melton.
Asfordby Storage & Mailway in Saxby Road, Melton. Photo: Google.
A Mars UK spokesperson said: “We can confirm that after a very competitive tender process, we have made the difficult decision to conclude our existing relationships with our third-party warehouse operators in a phased and responsible approach over the coming years. We are grateful to our incumbent providers for their continued invaluable work and desire to ensure a smooth transition between providers. It would be inappropriate to comment directly on specific arrangements with our third party businesses and any impact for them. We will of course be working closely with our new partners, DHL to ensure a smooth transition.
This change to our logistics network will not impact any of our factory sites. Melton is and will remain an integral part of the Mars story in Britain. We are proud to be a part of the Melton community and our ambitious partnership with DHL is a clear indicator of Mars’ enthusiasm for the growth potential of the British market.”
A DHL spokesperson added: “We are delighted to be extending our global partnership with Mars. Employees at Asfordby and Mailway will be offered the chance to transfer over to the new East Midlands Gateway site and we look forward to welcoming them to the DHL family.”
Mars UK moves more than 1.2 million pallets of products every year – stacked on top of each other that would reach to the top of Mount Everest every other day.