Zenith leases back tankers to cut costs

By FWi staff

DAIRY co-op Zenith Milk has sold its fleet of milk tankers for 2.76 million in a move to cut costs and gain flexibility.

The co-op sold its 106 vehicles to TIP Tanker Services, one of Europes leading transport rental, leasing and sales companies.

It is now leasing them back, bringing greater flexibility and significant cost savings, said a spokeswoman for the company.

“TIP offered us a very competitive funding rate, and will implement a flexible vehicle exchange programme to take advantage of changing business requirements.”

The first tanker has already arrived at Zeniths mid-Wales depot, replacing two smaller tankers, bringing tangible efficiencies in collection and operating cost per vehicle, said the spokeswoman.

“Any savings can then be passed on to our producers,” she added.

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