DX has announced it intends to build a new 25,000ft2 regional hub in the East Midlands of the UK for £12m (US$15.3m).
The proposed new hub will include a depot serving the local area and be funded from DX’s existing cash resources. Detailed planning permission has been secured and the acquisition of the site is expected to complete within the next two months.
The hub will be located on a 4.5-acre redevelopment scheme near Nottingham at New Stanton Park Industrial Estate and will be developed to service the group’s parcel freight activities. The new hub and depot will provide significant additional regional capacity and improve efficiency by reducing stem mileage. Construction, which will benefit from a raised dock and mechanization, is expected to be completed during 2024. The new depot will replace an existing freight depot in Nottingham, which will become a dedicated 2-Man supersite.
The investment is in line with the board’s stated strategy to make property investments that support the ongoing growth of the group’s operations and is a key part of its capital allocation policy. Further property investment will be considered as appropriate. The investment in the new regional hub is in addition to DX’s three-year investment program of £20m-£25m (US$25m-US$32m), which is currently in its second year. This program is focused on expanding the group’s depot network, adding handling equipment and enhancing IT.
Paul Ibbetson, CEO of DX (Group), commented, “The purchase of this site in Nottingham will enable us to create a major new regional hub and depot for our parcel freight operations and is in line with our plans to make strategic property investments. The investment will increase our capacity, drive efficiency improvements as well as enhance customer service. Further site openings and upgrades are planned as we continue to invest in developing the Group’s network in line with our growth plans.”
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