Swedish supply chain giant agrees significant North East letting

A global supply chain, printing and packaging specialist is to continue investing in the North East after snapping up a landmark industrial site.

Elanders has agreed a 10-year lease to take on a £4.6 million industrial unit on Tyne Tunnel Trading Estate delivered by UK Land Estates.

The new hub will also act as a springboard for the expansion of its Bergen Logistics brand, a subsidiary of Elanders providing pick-and-pack and e-commerce fulfilment solutions.

The move will see the company create dozens of jobs and will complement its existing UK head office in North Tyneside, bringing its total North East headcount to 200.

Established over a century ago, Elanders was founded in Sweden and today boasts offices and facilities across Europe, Asia and the Americas.

Starting life as a printing business, the group has diversified to establish and manage end-to-end supply chains, helping businesses with global logistics, warehousing, direct to consumer and B2B order fulfilment, reverse logistics, printing and packaging and many value-added services.

This growing focus on providing supply chain support is what inspired the company to continue investing in the North East, with its new Tyne Tunnel base playing ‘a key role’ in helping expand its fulfilment service and expanding its presence in the fashion and lifestyle sectors across the UK, EU and USA.

Kevin Rogers, managing director at Elanders UK, said: “The site and facility we both perfect for Elanders UK from a size, location, layout and quality perspective. The location enables us to manage our activities effectively as it is less than five minutes away from our UK HQ.

“The design and layout is also perfect for our supply chain business with an open plan warehouse and its ratio of office to warehouse space. The appearance, specification and quality of the building is in-line with Elanders existing facilities and projects a very professional image.”

The North East is home to a growing cluster of warehousing and fulfilment organisations and it was this increasing activity, combined with the region’s skilled workforce, which inspired Elanders to continue investing in the region.

Kevin added: “The demand for supply chain services is rapidly increasing in the UK, especially for fashion and lifestyle brands and businesses who have a pan-European or global requirement. This new facility significantly increases our supply chain capacity not only in the North East but also the UK.

“The North East is a perfect location to support pan-European business because of its access to road, air and Port of Tyne for sea shipping. Elanders has been a Newcastle based business for more than 100 years and we’re very proud to continue our investment in the region. Watch this space for further investment in the future.”

Situated on the Intersect 19 area of the Tyne Tunnel Trading Estate, the unit secured by Elanders was a speculative development by UK Land Estates, partly funded by a £731,818 grant from the North East Local Enterprise Partnership (LEP) via the Government-backed Getting Building Fund.

The building offers a total of 48,666 sq ft high quality industrial space and has an ‘A’-rated Energy Performance Certificate (EPC), with Elanders also benefiting from an array of photovoltaic (PV) panels on the roof providing free green energy.

David Gibbs, commercial director of UK Land Estates, said: “Despite the economic climate at the time, we took the decision to build this new facility with the belief that the North East would remain a desirable place for businesses to invest and that decision has certainly been proven right.

“In Elanders, we are seeing yet another global business continue to invest in the region after establishing roots here and it is testament to the strength of the region’s proposition – from its skilled workforce to ready access to well-connected premium workspaces.

“Speculative developments are always a risk for developers, especially during times of economic uncertainty, however this letting proves that there is still a lot of demand for this kind of accommodation from a wide range of different companies.”

Mark Proudlock, partner at Knight Frank, who advises UK Land Estates on lettings and development at Tyne Tunnel Estate, added: “Supply of good quality modern logistics premises is as low as we have experienced and UK Land Estate’s ongoing commitment to the delivery of new high specification units is hugely beneficial to the growth of businesses in the North East.

“UK Land Estate’s dedication to designing buildings that work well for occupiers and include measures to maximise environmental performance helps drive forward the region’s offering ensuring it remains at the forefront of logistics and industrial development.”

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