Wednesday 28th Sep 2016 - Logistics Manager

JCB contract win for DHL

DHL has taken a 142,000 sq ft warehouse at Fradley Park near Lichfield to service a new contract with JCB, the industrial machinery manufacturer. It will provide a cross-dock facility for imported goods and enable value added activities including sequencing.

The building, named Hawk, will be used as parts distribution centre. The new contract – which has fuelled the letting – reflects strong results at JCB, with the company recently announcing a recruitment programme to take on 80 engineers, and deals to supply a total of over 800 machines.

A DHL spokesperson said: “DHL Supply Chain has taken space at the Fradley Park facility in Lichfield as a result of a new five year contract with the global manufacturer of construction equipment, JCB. The contract commenced in June 2011. 

“DHL was appointed JCB’s lead logistics partner in 2010, with responsibility for managing and optimising global inbound material flow from international suppliers to its local manufacturing and aftermarket supply chain. The new facility will create a cross-dock for imported goods from worldwide suppliers; enable value-added activities including sequencing and kitting of parts, and create additional offsite storage.“ 

DHL has taken the building on a five year lease at a rent of £4.50 per sq ft.

JCB, which is based at Rocester near Uttoxeter, reported a 48 per cent rise in sales to £2bn for 2010. As a result of the return to growth, the company is investing in facilities around the world including a £63m factory in Brazil and a £19m engine plant in India.

IN a second deal at Fradley Park, the Amethyst Group, which already occupies a 111,300 sq ft unit at Fradley Park, has competed a new five year lease on a new 102,174 sq ft unit named Falcon. The significant expansion is a sign of the company’s continued success in the retail sector, with customers such as New Look.

Nicholas Mehangra, asset manager at F&C REIT said: “DHL and Amethyst Group both secured existing units and as a result both were able to gear up their operations very quickly, creating many new jobs in the process.”

Tesni Thacker, associate in GVA’s Industrial department, said: “It is great that we are seeing an increase in demand across the region from both the automotive/logistics and retail sector, particularly given the difficult time that these industries have faced over the last few years.”