A MOTOR industry logistics specialist in Worcester has been awarded a £1.2m contract with another city firm.

TM Logistics rolled out the deal with international component manufacturer Hydro Aluminium UK.

The three year contract will see TM Logistics managing warehousing and delivery operations for Hydro Aluminium's Worcester base, which makes chassis for top range cars such as Aston Martin and Lotus.

The two firms have built a strong partnership since 2002 when TM Logistics was awarded its first contract with Hydro Aluminium, according to company supply chain manager Paul Rowbery.

"TM Logistics' commitment and approach to this partnership has been excellent," said Mr Rowbery.

"We wanted a partner that would understand the complexities of our requirements and who can cope with our future growth.

"Their interaction with us to develop business needs has meant that our relationship is now stronger then ever."

The new contract coincides with announcements on a new group structure at TM Logistics' parent company Taylors of Martley, which has made Stephen Taylor the new group chief executive officer.

Under the new structure, TM Logistics will be headed up by director Grahame Taylor. David Bratton becomes UK operations manager with Adrian Fleming taking on business development.

Stephen Taylor said: "It's a volatile climate for automotive manufacturing, but this is proof that component manufacturing is still very much alive in the Midlands.

"We have the expertise, critical mass and production knowledge in sequencing operations to fulfil Hydro's needs.

"Our new structure is designed to build our reputation as logistics experts.

"The company is progressive and ambitious and this new formation is an important step forward."

Employing more 350 staff, TM Logistics ranks packagers Rexam, Coca-Cola Enterprises and Kingspan Insulation among its clients.

Turnover in the last financial year was £30m.