Material handling, automation and maintenance specialist AMH Material Handling has won a multi-million pound contract to expand a retail fulfilment site for supermarket-giant Asda.
The contract will see the Halesowen business expand and convert the North East Clothing depot in Washington into a dual facility handling e-commerce orders as well as supplying stock and retail stores.
The work carried out by AMH – which also has a site in Wolstanton, Newcastle-under-Lyme – will increase processing capacity by 50 per cent, with the addition of a third national distribution facility to handle the continued growth of Asda’s e-commerce business.
The new facility will create ‘significant’ job opportunities within the Tyne and Wear area.
Due to be completed in 2021, AMH will install varying types of flat conveyors and a horizontal crossbelt sortation solution.
With automated induction stations for sorting by destination, the system is designed to quickly and accurately handle the vast amount of product processed in totes, poly bags and cartons.
AMH will also supply and install overhead hanging garment conveyors for the handling and transportation of inbound goods and Adpak automatic bagging machines to further automate the process.
Adrian Carter, sales director at AMH Material Handling, said: “AMH Material Handling has worked with Asda since the introduction of its e-commerce business in 2011. Over the years, we’ve seen the existing operations expand year-on-year and we’ve continually supported Asda with both installations and maintenance along the way.
“Being awarded the contract to deliver the third e-commerce operation for Asda is a great opportunity. With our extensive working history and an in-depth understanding of how the business operates, AMH is ideally positioned to deliver a solution for this valuable contract.
“The addition of this e-commerce operation enables our resident engineering team to work with Asda from the very beginning of the project. This will provide a seamless transition from a pure retail store operation into a multi-fulfilment e-commerce operation.”