DANONE EAUX FRANCE AND CHEP COLLABORATE TO REDUCE THEIR CARBON FOOTPRINT

Clichy, France, 22 April 2010 – CHEP has signed a transportation agreement with Danone Eaux France, relating to its Evian and Volvic brands, to use their train service operating between the UK, Germany and France for the distribution of its empty pallets.*

Danone Eaux France, the world’s second largest producer of bottled water, delivers its Evian and Volvic products from plants in Auvergne Province and the French Alps into the Daventry rail terminal in the UK, operating up to five trains each week.

On the return journey the trains are filled with CHEP empty pallets which would previously have been transported by truck into continental Europe, an estimated 460,000 per annum. A further 240,000 CHEP pallets are returned under a similar arrangement from the Danone’s Hockenheim and Duisbourg logistics centers in Germany to Evian (France) using the return rail capacity following Danone deliveries by train to central and northern Germany.

Pierre-Yves Corbiere, Country General Manager, CHEP France said: “Working with Danone Eaux France is an exciting opportunity. Both CHEP and Danone Eaux France are committed to minimising the impact of our operations on the environment. We estimate that CHEP will be able to transport almost 700,000 pallets per year using these rail services, eliminating more than 1,650 truck journeys and reducing CO2 emissions by 1,000 tonnes as a result.”

Nicolas Ravaille, from the logistics purchasing department of Danone Eaux France, commented: “Since 2005, Evian and Volvic have reduced the carbon footprint by 15% in the UK. This initiative with CHEP will help us reduce our carbon footprint even further. CHEP has shown to be an excellent partner as we share similar values when it comes to protecting the environment.”

Enrique Garcia, Vice President Logistics, CHEP Europe said: “The opportunity to use the spare rail capacity on the return journeys is an excellent example of how collaboration between our two organisations can generate substantial environmental benefits and cost efficiencies. This international project involves, multiple stakeholders in France, the UK and Germany including two different logistics service providers.

Initial trials between the UK and France began last December and the project was extended until the end of January. During this period a total of over 50,000 pallets were transported. A major challenge has been to deal with the complexity of multimodal flows, with pallets being delivered from CHEP service centres to the rail terminal in Daventry, where the pallets are loaded onto the trains.

* With goods being imported across borders on CHEP pallets, it is necessary for CHEP to export its pallets across Europe in order to maintain the balance of its equipment pool.

About Danone Eaux France

Danone Eaux France manages the sales of major Danone water and beverage brands including Evian, Volvic, Badoit et La Salvetat, and Taillefine. It employs more than 2,500 people working in 5 sites across France, 4 of which are bottling plants.

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