A POWYS company has sealed a new contract with a north Wales distribution company.

The McCarthy Group, based in Wrexham, signed a three-year extension to its contract with Wipak UK, which has a manufacturing base in Welshpool where it makes packaging films for preserving and protecting food products.

The company opened the Wipak factory in Welshpool in 1996 and recently invested over £5 million in a new state of the art production line at the Buttington Cross Enterprise Park, which is expected to create 50 new jobs for the local area in the coming years.

Managing director Mike McCarthy said: “This is fantastic news for the company. We’re delighted that our contract with Wipak has been extended and they have chosen us as their partner going forward.

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“We’ve worked well together over the last three years and they have significant expansion plans so we are really pleased to have them as a really important client of ours.

“We are well placed to grow with them and support them with their expansion plans.

“The values of two companies are well aligned. Our culture is similar because we both believe in doing things to the highest possible standard and creating good team work between two companies.

“We really see it as a partnership rather than a customer-supplier relationship,  in terms of the facilities  here as well as the level of service we provide.”

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Peter Stavrou, the Wipak Group’s Logistics Manager, said: “We were introduced to McCarthy and evaluated them and saw them potentially as a really good long term partner.

“These are exciting times for both companies. We’ve really been happy with the partnership, hence why we signed the extension and we’re really looking forward to continue to grow with them.

“I’m very impressed with what I have seen of the new extension and we are also impressed that they take the environmental impact into consideration with everything they do.

“That’s also a core of our strategy to be carbon neutral as an organisation by 2025. We’re very ambitious in that project and we’re a long way down that road already.”