Logistics group threatens to pack up after £35m warehouse plan rejected
A logistics company is threatening to pull the plug on the West Midlands after planning permission for a new £35m distribution hub was refused for the second time.
DX Group had wanted permission to develop the large new facility at the former Essington Brickworks site, off Hobnock Road, Essington, near Wolverhampton.
The facility was set to replace an existing hub in nearby Willenhall which the group said had become unsuitable for current requirements.
However, South Staffordshire Council rejected the scheme saying it represented inappropriate development – just as it had in May last year.
In a statement today, DX Group said: “DX, the independent parcels, mail and logistics operator, announces that the company’s proposed plans for the development of a new central hub at a site in Essington have been declined at the local authority planning hearing held last night.
“The company is now considering its options, including the development of an alternative site, in consultation with its stakeholders.”
The develop was set to sustain 550 jobs and possibly create up to 150 more.
The warehouse building was planned to be served by 84 loading docks and 13 level access loading doors for HGVs with associated circulation space, 98 HGV parking spaces and associated vehicle wash, fuelling point and weighbridge area. The warehouse and office building would have been served by 250 staff and visitor car parking spaces, of which 13 were accessible spaces.
DX had claimed that the delay in moving to a more appropriate facility was impacting on the business, as well as South Staffordshire through the loss of inward investment.
DX reached an agreement to purchase the 44-acre site in 2015. It estimated then that the capital investment required for the project was approximately £35m, including the site purchase. This was to be funded from the company’s existing cash resources and debt facilities.
It expected then that the project would be completed over the next two to three years.
“The hub is intended to replace DX’s current sites at Willenhall, approximately 3.5 miles away, securing existing employment and creating substantial additional capacity, enhanced customer service levels and increased efficiencies,” it said at the time.
