Jams and marmalade producer Mackays is investing £3.8 million in new packing and distribution facilities close to its main production hub in Arbroath.
The move to acquire two industrial buildings formerly occupied by US oilfied services company Weatherford at the Angus town’s Kirkton Industrial Estate is part of a wider growth strategy for the food company.
The new facilities will be turned into Mackays dedicated packaging and distribution hub and allow space at the existing site to be freed up for the introduction of new product lines.
Mackays – which currently employs a 180-strong workforce – is investing £3m of its own cash in the development and a further £875,000 is being made available through the Food Processing, Marketing and Co-operation (FPMC) grant scheme.
The new hub will enable the servicing of up to five lorries at a time, up from one today.
Managing director Martin Grant said the new facility – which is expected to open for business in January – will allow Mackays to achieve its growth ambitions.
“In 1995 we were filling just 10,000 jars a year which – compared to today’s 25 million – demonstrates the demand for Mackays Dundee Marmalade and jams,” Mr Grant said.
“The investment will enable us to continue to meet this demand while continuing to make our products in the traditional way using steam-heated copper-bottomed pans for a truly authentic taste.”
Mr Grant said the investment rounded off a strong year for the business in which it delivered a 7% rise in turnover and a 35% uplift in export orders.
In total, Mackays now sell into 80 territories worldwide – including far flung destinations such as the Galapagos – and export sales makes up 40% of the group’s turnover.