Leading independent builders' merchant, James Burrell, has identified a site in Rotherham where it will invest £2m in opening its tenth branch.
Rothbiz reported in October that the Gateshead company was preparing a 48,000 sq ft Rotherham branch with a 3,000 sq ft office and trade counter area, displays, a warehouse and onsite vehicles.
Plans have now been submitted for substantial changes at 1-4 Wortley Road, the Masbrough site that was vacated in 2016 by Esco Corporation.
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The builders' merchant's proposals include the demolition of one half of the existing building to form an enlarged storage yard. New roller shutters opening onto the new yard are also proposed, as are external racking bays and new palisade fencing. 57 car parking spaces are set to be retained.
A change of use application was approved last year and the method of demolition has already been approved.
If the latest plans are also approved, the new branch would open later this year creating 15 jobs. Recruitment is already underway for Rotherham-based sales, warehouse and transport jobs.
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James Burrell is an ambitious company and 2018 saw the opening of a new branch in Morpeth along with investment at current branches which offer a full range of high-quality civils, drainage, timber, roofing, insulation and heavyside building materials.
Esco Corporation, a US manufacturer in the mining, construction and industrial sectors, acquired the Wortley Road premises in 2011 as part of the deal for Hydra Mining Tools International, which at the time was one of Rotherham's most profitable businesses.
Esco Corporation, a US manufacturer in the mining, construction and industrial sectors, has vacated the Rotherham premises it acquired in 2011.
At the time of acquisition, Hydra Mining Tools International was one of Rotherham's most profitable businesses. The company, and its predecessor, Hall & Pickles Tool Company, have been associated with mining activities since the earliest days of mechanisation. Following the collapse of the British coal industry, the company was bought out of administration and refocused on supplying its specialist cutting tools to China.
The 45,165 sq ft premises at Wortley Road near Masbrough have now been made available for let, with agents, Knight Frank advertising the four office and industrial units used by Esco Hydra, as a whole or in part.
Advertisement Everything from CNC machines to office furniture has been put up for sale later this month with specialist auctioneers, Peaker Pattinson by the company "due to the re-organisation of its manufacturing facilities."
In its latest accounts submitted earlier this year, Esco Hydra UK said that "in 2015 there have been headwinds that have resulted in a decision to consolidate the operations in one location." The UK subsidiary has since changed its registered address to the Esco site at Ings Lane in nearby Doncaster.
At the time of acquisition, 130 staff moved over from Hydra Mining Tools to the Esco Corporation. In the year previous, international sales were at an impressive £8.7m.
Esco, which celebrated its 100th anniversary in 2013, has been affected by the global downturn and has seen global demand for mining products decline since its peak in 2012. It has been reducing foundry capacity ever since - its site at Guisboroough, Teeside closed in 2014 and it announced the closure of its Canadian and Australian sites in 2015.
At the end of 2015, the firm was forced to announce plans for the future closure of its main plant in Portland, Oregan.
Leading Rotherham companies are amongst the mid-market firms that are driving growth in the region, according to the Yorkshire Report 2015, published today by accountancy and business advisory firm BDO LLP.
The top 250 firms in Yorkshire have increased revenues by £6bn to £102bn, and now have cash in the bank in excess of £3.2bn – an almost £1bn leap from the previous reporting period. However, further analysis which splits the top 50 firms (£300m+ turnover) and the mid-market 200 reveals it is the region’s medium-sized businesses that are driving growth and prosperity for Yorkshire.
Mid-sized firms are rapidly outperforming their larger peers in all key performance indicators. Turnover, overseas sales and employee numbers are growing faster in the mid-market than they are among Yorkshire's biggest businesses.
Turnover has grown by 13.2% for mid-sized firms (compared to 5.2% for the largest 50 companies); employment levels are up 11.6% (compared to 2.8%) and overseas sales have rocketed by 19.3% (compared to just 3.6% in large firms).
Rotherham firms making onto the list include manufacturers, AESSEAL, AMG Superalloys UK Limited (formerly LSM), Exol Lubricants, ABS Industrial Resources Ltd, Jeld-Wen UK Ltd, New York Bakery Company Ltd, Schaeffler Automotive Aftermarket (UK) Ltd and Esco Emea Holdings (UK) Limited (the UK branch of Esco that purchased Hydra Mining Tools). Also in the top 250 are nursing home operator, Falcon Capital Investments Limited; the construction group, Horbury; electronics retailer, Maplin; growing national recruiter, Nicholas Associates; and SVM Europe, a leader in the gift card industry.
Terry Jones, partner and head of BDO LLP in Yorkshire, said: "Yorkshire firms have recovered well and are growing strongly, with cash in the bank, employment and overseas sales all on the up. But what's really clear is how important the mid-market is to our regional economy and future prosperity.
"Medium-sized businesses – our newly named "Brittelstand" - are the real drivers of growth in our region. With continued investment, ambitious growth strategies and the right government support, they will fast become the big businesses of tomorrow."
The backbone of Yorkshire's economy remains strong, with manufacturers accounting for 72 of the top 250 companies. The region's manufacturers saw profits before tax jump 38% to more than £1bn in the reporting period. The sector also accounts for more than half (£4.9bn) of the total overseas sales made by the 250 companies.
The retail sector continues to be the largest contributor to revenues (£44.3bn), however profits have plummeted following another tough year for food retailers Asda and Morrisons which account for more than 90% of the sector's revenues. Manufacturing was the second biggest contributor with revenues at £12.4bn, followed by the food and drink sector which recorded a 22% jump to £11.3bn.
Rotherham company, ESCO Hydra UK picked up the outstanding Business of the Year Award at the recent Sheffield Business Awards.
Organised by Sheffield Chamber of Commerce, the awards celebrate and reward the achievements of businesses throughout the Sheffield City Region.
In addition to the top award, ESCO Hydra UK also scooped the Excellence in International Trade Award.
One of Rotherham's most profitable businesses, Hydra Mining Tools International, was acquired by the American ESCO Corporation for an undisclosed sum last year. They employ 139 people with headquarters at Kimberworth, Rotherham, where carbide, mineral cutting tools, toolholders, cutting chains, conveyor rollers and related components are produced.
Their Doncaster factory specialises in fabrication work, producing shearer drums, cutting heads and discs, jibs for cutting chains, and conveyor structure.
Sales were £11.8m in 2010 and the firm saw exports climb to £8.7m, up 65% a year compared to 2008. This was boosted by its Chinese and American subsidiaries and they now win 26.5% of sales from China, compared with 2% in 2008.
Fellow Rotherham company, Sizer Pelleting was also recognised on the night, when their managing director, Roger Pearson, was named as Business Person of the Year.
Templeborough-based Sizer, which is part of the Newburgh group, is an expert in providing pelleting solutions for a wide range of different materials.
The simple process turns difficult to handle materials into individual pellets that, depending on the waste material, can be used for anything from animal feed and fertiliser to biomass fuel for heating homes.
Eastwood manufacturer, CMD Ltd was runner up for Next Big Thing Award for their Footprint system that reduces energy use in the workplace.
Rotherham recruitment specialist, Elevation Recruitment, were headline sponsors for the awards.
Fellow Rotherham company, Sizer Pelleting was also recognised on the night, when their managing director, Roger Pearson, was named as Business Person of the Year.
