Builder seeks better buying

11 April 2007
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12 April 2007

An improved procurement function will be one of the major benefits of the merger between construction companies Taylor Woodrow and George Wimpey.

The £5 billion deal, announced by the two companies last month, will create Taylor Wimpey, the UK's largest housebuilder constructing over 30,000 homes in the UK and US each year.

The company said in a statement: "Through leveraging its increased scale, the combined group should be able to achieve improved procurement terms and conditions while maximising supply chain efficiency."

Spokesmen for both firms also told SM that it was too early to say how the merger would affect the size of procurement teams.

However, the two companies have set up an integration team to manage the changes.

They were also unable to say what would happen to the respective heads of procurement, former CIPS president Peter Williams at Wimpey and Steve Parr at Woodrow, saying it was "one of the many matters to be considered".

The group is also looking to make £70 million cost savings through the merger, set to complete in the summer, on top of the £25 million savings Wimpey already expects to make in 2007.

SMapr2007

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