Oxford logistics company Unipart has landed a lucrative contract which will create 50 jobs.

Under the terms of the new contract with car and bike retail chain Halfords, Unipart DCM will distribute and warehouse one third of Halford's products nationwide, moving about 25,000 lines a day.

Unipart, based in Cowley, will distribute automotive parts including wiper blades, filters, oils and antifreeze.

The new staff will be taken on before Sept ember.

Chief executive John Neill said: "We have been working on this for over a year. It's thanks to our track record and people that we have got the job. It's a great tribute to all.

"They chose us because of our track record and outstanding customer service, our extensive capabilities in IT systems delivered through Unipart Logistics System, and our commitment to continuous improvement and people development."

He added: "This five-year contract could be the beginning of a very fruitful relationship."

Last year, 300 Unipart workers were made redundant at Cowley, and the firm's share price dropped 14 per cent.

About 2,000 of Unipart's 10,000 employees hold shares in the company, which is not listed on the stock exchange, owning about 50 per cent of the business. Now, the company is fulfilling a promise made by Mr Neill earlier this year to turn adversity into opportunity.

In 2001, the firm turned in record sales, and operating profits of more than £22m, with a £50m reduction in borrowings. That compares with a £111m loss the previous year, which was blamed on the £179m purchase, two years earlier, of Partco.

Halfords, which employs 9,000 people and has 400 UK stores, started as a hardware shop in Birmingham in 1892 and is now the country's top retailer for car part, cycles and cycle parts.