Partner Article

Owen Pugh invest £900k in Gateshead depot and plan to recruit

North East construction firm Owen Pugh has invested £900k in a new Gateshead depot to house its growing civil engineering division, through which it plans to take on staff

Owen Pugh GDC, a subsidiary of the Owen Pugh Group, acquied the three acre site on Factory Road in Blaydon following a £750k finance package from HSBC’s North East Corporate team.

The division delivers civil engineering contracts including drainage, environmental, flood alleviation, coastal, river works and urban regeneration work to local authorities and water utility firms.

HCS Drain Services, Owen Pugh’s drainage arm will establish a northern hub at the depot to complement its Stockton base. The firm also plans to relocate its construction team from its current Dudley headquarters.

John Dickson, chairman of the Owen Pugh Group, said: “Owen Pugh GDC had outgrown its existing premises so we looked into a number of options, including the extension and refurbishment of existing facilities, but this didn’t offer a long-term solution that satisfied long-term growth plans.

“The acquisition of the Factory Road Depot will provide Owen Pugh GDC with increased space for organising and servicing vehicles and their crews, more room for plant and equipment and for expanding the range and quantity of parts and materials held in stock. Additional office space is also available to support the growth of engineering and project management teams.”

Andy Parker, HSBC senior corporate banking manager who led the deal on behalf of the bank, added: “Owen Pugh GDC is a great business with a highly-experienced management team.

“It has experienced strong growth over the past five years and we are delighted to have provided this finance package to help it achieve further growth going forward.”

The Owen Pugh Group forecasts a £13 million turnover for the coming financial year but had reported a drop in profits prior to Christmas.

This was posted in Bdaily's Members' News section by Tom Keighley .