Major investment is to lead to the creation of up to 60 new jobs following a deal in which independent international steel stockholder and distributor Rainham Steel Company has bought almost 17 acres of commercial land and properties in North Lincolnshire.
The business, which already services the UK, European and world markets from a 70 acre site and distribution facility in Scunthorpe, is to use the Althorpe Wharf site, in Station Road, Keadby, as a base for manufacturing reinforcement bar products.
The sale of the land, which was owned by RMS Trent Ports Limited, included open storage land and a number of industrial warehousing facilities, with a deal close to asking price agreed.
Rainham Steel Company is now to invest around £3.5m into developing the site over the coming year, installing plants and machinery in the existing facilities on site. Longer term plans are to build a dedicated new building on site.
The company supplies major steel fabricators, stockholders, construction companies, civil engineers and builders’ merchants, employing more than 180 members of staff. It already has four other sites in Scunthorpe.
The land had previously been used by RMS Trent Ports Limited to stock a variety of mainly bulk and steel based imports and exports.
The company, which handles all types from cargo through the Humber ports, turned to Hull-based commercial property specialists Garness Jones to sell the site after it became surplus to their business requirements.
Francis Micallef, operations director at Rainham Steel, said: “This is a really exciting announcement as we are going to be making a significant investment into this site to transform it into a northern reinforcement bar manufacturing site, adding to a similar one we have down south.
“We’ll initially be creating around 20 new jobs at the site, and we expect that number to increase to around 60 new jobs over the course of the year, as the site becomes fully operational.
“We’d actually looked around the site a few years ago as we’ve always enjoyed a good working relationship with RMS Trent Ports through their importing of steel. It wasn’t quite the right time then, but when we saw it on the market recently it was the perfect time and opportunity for us to add this new manufacturing facility.
“It’s obviously very pleasing to be able to put this large site into good use, expanding our operations and creating new employment in the region. We also have plans to reopen the Wharf on site in the future too.”
Chris Hyam, senior surveyor at Garness Jones, handled the deal and said: “We are delighted to have secured this sale for our client RMS Trent Ports Limited, as the site had become surplus to requirements for them.
“Following a short period of marketing we had strong levels of interest from developers and owner occupiers.
“It is an excellent acquisition for Rainham Steel, as they have secured a large site which can meet their expanding manufacturing and storage needs.
“The existing buildings allow for immediate expansion of their manufacturing processes and the surplus land allows for potential future development. It is a great deal for the local economy given it is leading to further significant investment and new jobs.”