(Alliance News) - DX Group PLC on Wednesday announced the proposed development of a "major" new regional hub in the East Midlands.
DX is a Slough, England-based provider of delivery solutions, including parcel freight, secure courier and logistics services.
The proposed new hub, which will include a new depot serving the local area, is expected to cost approximately GBP12 million. DX said it will be funded from its existing cash resources.
It noted that 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.
DX explained that the 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 mechanisation, is expected to be completed during the second quarter of 2024.
The new depot will replace an existing freight depot in Nottingham, the company added.
The investment in the new regional hub is in addition to DX's three-year investment programme of between GBP20 million to GBP25 million, which is currently in its second year.
Chief Executive Officer Paul Ibbetson said: "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."
DX Group shares were flat at 31.00 pence each in London on Wednesday morning.
By Sophie Rose, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
