Palletline’s closure of its Wrexham hub within two years of acquisition threatens over 50 jobs, as area coverage is reassigned among existing members.
- Palletline is working to reallocate jobs for 56 employees affected by this closure, as it shifts focus to member-controlled operations.
- The move, part of a strategic rebranding from Ningbo Wrexham, aims for continued growth amid operational losses at Wrexham.
- A Facebook group expressed the closure as a ‘devastating blow’ illustrating the rapid shifts in the haulage industry.
- APN reports reveal a 1.5% growth in pallet volumes for early 2024, reflecting a competitive freight market.
Palletline Logistics announced the closure of its Wrexham operation, a decision made just two years following its acquisition. This abrupt move places more than 50 jobs at risk, as the company seeks to redistribute its service coverage among existing network members. As part of this transition, the company is endeavouring to collaborate with network members to secure alternative employment for its workforce. The operation, which employs 56 staff, consists mainly of operatives and warehouse personnel whose future employment hangs in the balance.
The decision to close the Wrexham logistics hub aligns with Palletline’s strategy to return operations to member control where appropriate. This restructuring involves realigning delivery areas to sustain comprehensive network coverage, facilitated by collaboration with four existing members. By doing so, Palletline aims to bolster these members’ strategic growth while addressing ongoing financial deficits at the Wrexham site, highlighted by recent operational losses.
In response to this development, commentary on the Facebook group ‘Loris Y Gogs/Trucks Around North Wales’ labelled the news as a ‘devastating blow.’ The sentiment reflects the significant impact on dedicated employees and underscores the volatile nature of the transport and haulage sector. The abrupt change illustrates the pressures on companies to maintain sustainability within a fiercely competitive market.
The rebranding from Ningbo Wrexham to Palletline Wrexham was intended as a strategic manoeuvre to enhance the company’s market position in North Wales. However, despite this rebranding effort, the necessity to close the Wrexham facility emerged as a financially driven necessity.
Data from the Association of Pallet Networks (APN) reveals a 1.5% increase in pallet volumes during the first half of 2024, with a more pronounced 3.5% growth in the second quarter compared to the previous year. Despite these positive trends, Palletline reported its revenue for 2023 remained static, highlighting the intensely competitive nature of the palletised freight market.
The closure of Palletline’s Wrexham hub underscores the logistical and economic challenges companies face in the current haulage industry climate.
