Global retailer invests £15m to establish European HQ in Birmingham
Billion-pound retail giant LuLu Group International is to establish its European headquarters in Birmingham as part of a £15m investment in the city.
The investment will see LuLu subsidiary, Y International take possession of a new 124,000 sq ft unit at the Advanced Manufacturing Hub (AMH) in Aston.
The European hub will create 80 jobs and see the company export thousands of its products to more than 160 hypermarkets globally, as well as to local suppliers across the UK.
The new hub is the fourth investment project secured at the AMH – and the third by a foreign investor.
The site has already attracted German tool manufacturer Guhring, which opened its £12m UK headquarters there last year, while US hydraulics manufacturer, HydraForce opened its 120,000 sq ft factory at the site in 2016.
The third tenant has come from a little closer to home, with Birmingham-based Salts Healthcare opting for the hub as the base for an enlarged operation in the city. It announced last year it was taking possession of the 94,500 sq ft Apollo building, in a move that brings the total number of jobs created by the AMH to more than 1,400.
LuLu’s move into the AMH followed the purchase of land from Homes England and Birmingham City Council, in a deal secured by Savills.
Inward investment agency Business Birmingham is supporting the transition, with JLL, Freeths and Coltham Developments all advising on the deal.
A delegation from LuLu’s global headquarters in Abu Dhabi travelled to Birmingham to sign the deal.
Cllr Ian Ward, leader of Birmingham City Council, said: “The decision to make the Advanced Manufacturing Hub LuLu Group’s European headquarters is fantastic news for the region. Increasing levels of foreign investment from global companies like this is testament to not only the strength of Birmingham’s industrial legacy, but proof that the current strategy to grow the economy and create high-quality local jobs is working.
“Y International’s presence here will reinforce Birmingham’s position as a key gateway to UK and European markets, and has the potential to generate further interest from across the Middle East.”
Tony Perks, Director of Operations at Y International UK, said: “Birmingham has created the ideal base for Y International, forming an integral part of LuLu Group’s European expansion plans.
“When comparing potential locations, Birmingham offered a cost-effective and well-connected location, as well as readily-available, high quality space, making our decision easy.
“The acquisition of the land at the Advanced Manufacturing Hub gives Y International the opportunity to construct a large purpose-built production facility. This will enable the company to increase sales and is expected to result in an increase in staff from the existing 160 to 240, all recruited from the local area.”
Y international works with a wide range of businesses from across the country, transporting UK products 3,000 miles to the Gulf States and further afield. Its suppliers include Lovemore, a gluten free, baked goods company from Aberdare, Wales; Somerset-based The Traditional Free Range Egg Company; and Mission Foods, which produces flatbreads in Coventry.
Spearheaded by its retail division, LuLu Group’s portfolio includes hypermarkets, shopping malls, trading, shipping, IT, travel & tourism and education. The company has an annual turnover in excess of £5.2bn.
Pictured from top left is: Finance Manager, Fahim Mohamed and Middle East Procurement Specialist, Mohamed Sanji. Bottom from left: Cllr Ian Ward, Director of Y International, Mohamed Althaf and Director of Operations, Tony Perks.
