News: MTL's move to Rotherham is a big deal

The relocation of contract manufacturing specialist MTL Group from its current Sheffield base to a new 300,000 square feet advanced manufacturing facility in Rotherham is the biggest deal of its kind in South Yorkshire this year.

Announced last month, MTL has taken a 15 year lease at J34, the former Excel Logistics site in Brinsworth.

The purpose-built industrial unit comprises three large bays originally developed in 1970 and a fourth bay added in 1990. The facility was previously operated for supermarket giant, J Sainsbury.

MTL Group, which laser cuts, bends, machines and fabricates steel to customers' requirements in the defence, construction, rail and renewable energy sectors, has a global blue-chip customer base including BAE, Caterpillar, Babcock and Renault Truck Defence.

The company is to invest more than £5m in the J34 infrastructure to create a high-efficiency, low-energy facility. This follows MTL Group's £6m investment in the latest manufacturing technology including a 640-tonne robot press, the biggest of its kind in the world.

Over 250 jobs will be relocated in Rotherham and Yorkshire Forward is supporting the capital expansion with regional grant funding to support another 50 new jobs which will be created as a result of the move.

Dr Henry Shirman, managing director at MTL Group said: "Our business has faced many challenges in recent years - even more so in the recession but we have demonstrated that opportunities still exist for high-quality, focused manufacturing businesses to thrive.

"This relocation shows that we are continuing to move ahead with confidence. It will allow us to house our latest manufacturing technology and create 50 new skilled jobs while providing capacity for continuing expansion as the economic recovery gathers pace."

King Sturge's Leeds-based Industrial Team acting for the owner, fund manager Threadneedle Property Investments, London, which acts for Zurich Assurance.

Richard Harris at King Sturge said: "This letting, the biggest of its kind in South Yorkshire this year, demonstrates that there is still occupier demand for the right product, at the right price and in the right location.

"There is still a lot of property of this kind on the market and this deal shows that where landlords are prepared to be flexible, there are still good-quality, long-term deals to be made."

The Leeds office of property agents GVA Grimley acted alongside King Sturge in the deal and the Sheffield office of property consultants, Knight Frank, acted for MTL.

MTL Group website

Images: mtlgrp.com