North East Connected

Expansion planned for Teesside automotive steel logistics hub

A North East based logistics specialist is investing in further expansion of its award winning automotive steel hub as it gears up for future growth.

AV Dawson, which owns and operates a 100 acre freight terminal in Teesside, is developing its automotive steel logistics operation as it anticipates demand starting to outgrow existing facilities.

The business’ current automotive steel distribution centre, which is based around a 102,000 square foot state-of-the-art warehouse, serves as a Northern hub for customers such as Tata Steel to serve the North East automotive supply chain, including car giant Nissan.  

The £6.5m steel store, which was opened in 2015, is nearing capacity so the business is now planning to develop additional units on its freight terminal to automotive standards.

As a result of its innovative design, the existing facility has already enabled the company to scoop a number of industry and national awards, including the British Chambers of Commerce Award for Service Excellence.

The warehouse is rail-connected and runs on renewable energy. These and other aspects of the design are now being replicated by other businesses for steel facilities across the country and as far afield as the USA.

A reputation for world leading facilities and service, along with changes in the market, are resulting in increased demand and new opportunities for AV Dawson and so the business is continuing to invest to ensure it can support its customers effectively.

Neil McShane, AV Dawson rail manager said: “There has certainly been quite a shake up in the steel industry of late, however, that has actually opened up some signficant opportunities. The automotive sector is particularly exciting at the minute and we’re working alongside our customers to support them on new initiatives as they grow and expand.

“We have a regular and open dialogue with our customers and the wider supply chain to understand their challenges and future plans, and that helps us keep up with what’s coming down the line and therefore what our customers will need from us in the future.

“We recognise that we need to invest further now to ensure we have the additional hi-spec, climate controlled warehousing capacity that will be required to support the automotive market in the future. We’re therefore refurbishing and upgrading other buildings on our site to automotive standards so we can continue to provide the quality of service that these customers need and have come to expect from us.”

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