Xpediator (AIM: XPD) has signed a 20 year lease with Associated British Ports for a new 200,000 sq ft distribution centre at Southampton's Container Port.
The AIM-listed provider of freight management services said the opening of the new facility will take its UK warehousing capability to around 700,000 sq ft.
Associated British Ports has already kick-started the development of the new distribution centre which is expected to be completed in the first quarter of 2021.
The new warehouse site is designed to connect with Import Services' existing quayside distribution centre, doubling Import Services' operational capacity.
Shares in Xpediator were trading 2.00% higher at 25.5p during Wednesday trading.
The combined facilities will enable Import Services to hold stock under bond for order processing and distribution across the UK, continental Europe and global markets, this morning's statement highlighted.
“Import Services' new distribution centre will be just 100 meters away from where the deep sea container ships dock and with this new facility, our teams will be able to discharge containers efficiently, process orders and deliver straight to the point of demand,” said Stephen Blyth, CEO of Xpediator.
He added, “This new facility will not only enable us to meet demand but also capture additional market share by being able to offer superior services.
The timing of this expansion could also work favourably with the UK's move outside of the European Union."
In a trading update last month, the company reported a turnover increase of 19% to £212m up from £179.2m in 2018 which Xpediator attributed to 'a healthy mix' of organic and acquisition led growth.
Xpediator's audited results for the 2019 financial year will be announced in April 2020.
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