Supply chain solutions provider Wincanton has won a four-and-a-half-year contract with discount apparel retailer Matalan to build, manage and operate a new automated warehouse facility in Corby.

As part of the deal, Wincanton will transform the former plastics factory into a sophisticated sorting depot serving all of Matalan's stores in southern England.

It will be equipped with sortation and racking equipment for both hanging and boxed garments, including a 16,000-pallet-high bay, and will employ about 200 workers.

Initially, the facility will handle about 25 per cent of Matalan's total UK volume, growing to 50 per cent by 2008.