United promises supply deals

United Utilities (UU) told CJ it plans to hand out massive supply deals after it struck up a 42.5m contract with pipes manufacturer Uponor last week.

The company signed the first deal with the plastics extruder, in what it calls "smart procurement" arrangements.

A UU spokesman said the firm plans to use its size to negotiate supply deals for improvement programmes in water and gas. "It's about using our position as a leading FTSE100 company to make our procurement deals more effective. Previously we've used a number of plastic pipes suppliers and we want to use our position to have just one."

He said the company plans to extend smart procurement to other materials. "There are a lot of areas that we're looking at and talks over deals are ongoing. Why have a number of supply agreements across different businesses, when you can use that position to create greater efficiencies?"

The Uponor deal covers the North West, North East and Wales. The firm will supply pipes and fittings over three years, with the option to extend by two years. An Uponor spokeswoman said the firm is able to make emergency deliveries within four hours, using either its own fleet, or preferred supplier Burdens.