North East catering supplier The IG Group is spending £3m to improve its warehousing capabilities due to the strength of recovery it has seen following the pandemic.
The company said the positive growth of the market since lockdown restrictions were lifted and addition of key supply contracts for major national pub groups had driven a need to improve its capacity.
The investment includes the creation of an additional 90,000 square foot warehouse facility adjacent to its current distribution centre on the North West Industrial Estate in Peterlee.
The new warehouse facility will cater for an additional 8,000 pallets of extra products and is scheduled to be open in 2023.
IG Group said the extra space would allow it to take on new contracts from national accounts that want to buy crockery, cutlery and equipment from the business.
Managing director, Stephen Hoey, said the business used the Covid period to introduce new efficiencies in all departments and develop staff, boosted by support from HSBC, Durham County Council’s business development team and the government support package.
“Through Covid we retained our skilled workforce and invested in a progressive training programme to develop the team further and achieve a high level of customer service,” he said.
“Combined with our investment plans, this has meant that we were able to target new national customers and win long term contracts with them.”
For the year ending July 2021, IG Group’s parent company Innerglass Limited made pre-tax profits of £1m on sales of £21.5m compared with pre-tax profits of £232,000 on sales of £22.2m the year before.