NewCold is seeking additional premises in anticipation of a Brexit-fueled demand for food storage.
Jon Miles, country director, NewCold says the movement of goods from central European hubs into the UK will become more complex, based on the likelihood that the UK will leave the Customs Union and the impact that will have on supply chains.
“Currently, it is possible for a food producer to store product in a warehouse close to the coast in Belgium or France and deliver directly into UK distribution centres within acceptable lead times. However, a recent study by Imperial College London has indicated that even an additional 2-minute stop at customs checkpoints could lead to the final 40 miles of the journey to the Channel Tunnel taking five hours. The time and risk associated with these increased journey times will mean that the most obvious solution is to store the products closer to the market in the UK,” he says.
NewCold is adding 55,000sq metres to its frozen capacity of its Wakefield site that it expects to be fully operational by April 2018. “Frozen food handling in the UK is already in peak demand and we have developed the Wakefield facility in line with the projected long-term requirements of our key customers, and positive market outlook,” Mills says.
“Kantar World panel reported volume up by 2% in 2018, and this annual growth is expected to continue for at least the next 5 years. Phase two of the Wakefield site expansion lifts our capacity to 143,000 pallets but even so, we expect to be 70% full by June 2018. Add this to the increase in storage demand which is likely to be caused by Brexit and it is clear to see why we need to make provision for an additional UK facility.”
