FDBusiness.com

Rigid plastic packaging business Shalam Packaging is hoping to double in size after lodging a planning application to build a new automated warehouse at its Essex facility.

The Basildon-based business, which produces packaging for brands including Haribo, Silver Spoon, Homepride and Unibond, is planning build the 31m-high building alongside its current facility and to install up to 25 new production machines in the space currently used as a warehouse.

Operations director Steve Burrows, who is a shareholder in the company, said the investment could lead to a doubling in size of the business, which currently employs around 75 staff.

The proposed new facility would be an automated warehouse with capacity to store up to 4,000 pallets of finished containers. It would be 110m long, 10m wide and 31m high.

The planning application is due to be considered in July and, Burrow said, the facility would most likely be operational during 2013.

“We’re not reinventing the wheel – our parent company in Israel has a number of these facilities,” he said. “However, in the UK there are not a lot of facilities like this. But we have to be competitive and the height means we will pay far lower rates on the building.”

Shalam produces a range of rigid plastic containers including pails, salad boxes, catering packs, ice cream tubs and wet wipe containers.

The Basildon plant used to belong to Burrow until he sold the business to Shalam in 2009. It is part of a multinational business that also has facilities across Europe and in South Africa and the US.

Burrows added that the business was already operating 24/7 and that it had invested around £10m in plant and facilities since the Shalam buy-out in 2009.

“It’s really good news for Basildon… We are here for the long term and will continue to bring investment here,” he said.