CHEP Extends Its RPC Contract with Auchan in Portugal


LISBON, PORTUGAL - January 10, 2007 - Auchan in Portugal has agreed to extend its RPC (Reusable Plastic Container) supply contract with CHEP for an additional two years. Under the agreement CHEP will manage 3 million movements per annum of RPCs for the Portuguese distribution chain. This represents a 40% increase compared to the movements last year and therefore significant growth for the CHEP RPC business in Portugal.

Auchan began trading in Portugal in 1996 when it acquired the "Pao de Acucar" supermarket chain. As a result of this acquisition, Auchan benefited from the vast experience of the Portuguese operation, allowing it to grow the business into what it is today, a total of 17 stores across the country supported by a regional distribution centre.

Auchan had been using CHEP pallets for a number of years, when in October 2001 it decided to expand its business with CHEP to include RPCs. Today, Auchan appreciates the added value benefits which the CHEP pallet and RPC pooling system delivers to the entire supply chain. "CHEP's pooling system makes our picking process easier. It reduces product damage and transport costs, and therefore drastically improves productivity. Besides, thanks to CHEP we can address society's concerns, by not generating any waste and respecting the environment" said Joao Canaveira, Manager Logistics, Auchan, Portugal. He adds "We are extending our agreement with CHEP because they are a well managed company which offers optimum support and ensures we have the necessary stock of containers according to our needs."

Laura Nador, Vice President, RPC, CHEP Europe said, "We are delighted to be increasing our volume of business with Auchan in Portugal. CHEP, with its long history, reputation, and networking expertise, continues to strive to deliver a high-quality service to maintain customer loyalty and satisfaction, delivering exceptional value to our customers."

Contact Information

Robert Hutchison,

Director, Marketing & Communications,

CHEP Europe,

+44 (0)1932 833035,

robert.hutchison@chep.com

Victor Collado,

Manager, Marketing Communication,

Southern Europe,

+34 915579401,

victor.collado@chep.com

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