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Kuehne + Nagel scores Organon logistics contract

By Kirsty Barnes , 22-Jun-2006

Kuehne + Nagel's Irish arm has scored a new contract to manage the global logistics for Organon Ireland.

Under the deal, Kuehne + Nagel will provide global ambient/cold chain logistics services to support Organon's Irish drug manufacturing plant.

The firm will use road, sea and air to transport raw materials for the facility into Ireland as well as the outbound transportation of the finished products coming out of Ireland, with Dublin serving as the hub, David Sadlier, commercial director, Kuehne + Nagel, told Outsourcing-Pharma.com.

Further terms of the Irish contract were not disclosed.

In Ireland, Organon has located one of its two global manufacturing sites on a 31 acre site near Swords Village, Co Dublin, employing approximately 600 people and making a range of products which are packaged for over 50 countries.

Kuehne + Nagel believes it was chosen due to its ability to provide full visibility for all shipments globally, efficient transport solutions with many additional service options.

"In order to successfully compete in a global environment it is important for us to work in a partnership with suppliers who can deliver a value-add service," said Gerry Coughlan, logistics director for Organon Ireland, commenting on the deal.

Already a global leader in seafreight and airfreight, the Kuehne + Nagel Group now also ranks among the top five worldwide contract logistics players following its recent acquisition of ACR Logistics, a logistics service provider which has global coverage.

The company said the purchase was part of its growth strategy to build upon its offerings to provide customers with a "one-stop-shop solution."

The Organon deal adds to the growing number of logistics contracts that Kuehne + Nagel now have with major pharma firms.

Due to the growing demand for its services in Eastern Europe, the company recently expanded its Slovakian logistics centre, opening a new facility in Bratislava with 6,000 sqm of warehousing and handling space, and 7,500 pallet positions.

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