Haulage company DBL Logistics is building a new £2 million facility on a site on Tinsley Park Road, formerly owned by Sheffield City Council.
DBL currently employs 22 people at operations on Europa Close and says the new, 33,500 sq ft facility will enable it to increase its storage capacity from 1,500 pallets to around 6,000.
But, the company, which is a United Pallet Network founder and Gold Member depot doesn’t intend to stop there.
It has plans to add a further 16,500 sq ft by May 2014, boosting its capacity to around 9,000 pallets
Managing director David Clarkson said: “We are currently working at maximum capacity from our existing site and customer demand is increasing.
“We therefore needed to expand our facilities to meet this need in the market and grow the business further.”
“This is an exciting development for the business and will significantly increase our capacity to provide warehousing and distribution services for companies across the country.
“The creation of the new distribution centre is a further step forward in maintaining our position as a flagship depot within UPN and allows us to provide first-class travel and support to even more businesses.”
HSBC Bank is providing £1.8 million to support DBL’s expansion plants, which include expanding its fleet from 15 to 25 vehicles and buying more than £265,000-worth of equipment for its new facility.
DBL was founded 30 years ago as Yorkshire Distribution Services, by David Clarkson’s father, Bill, who continues to work with the company as operations director.
The Sheffield company is one of only three shareholder members of United Pallet Network and has seen its turnover rise to more than £3 million in recent years.
UPN chairman and founder, Martyn Chapman, said: “These are exciting times for DBL.
“Since joining UPN twelve years ago, DBL has constantly been recognised throughout the network as setting the standards for other members to achieve both in service and sales.
“We look forward to continuing to work in partnership with DBL throughout the coming years and sharing in their continued success.”