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(Sharecast News) - Trade distributor James Latham said on Friday that it has obtained planning consent to build its 300,000 square foot National Distribution Centre in East Anglia.
James Latham stated that an end-to-end supply chain review had concluded that the investment into a National Distribution Centre was necessary as part of its long-term planning in order to future-proof its supply chain, reduce reliance on third-party service providers and improve routes to market.
The AIM-listed company said its initial investment will be £6m for the land and then a further £39m over the next two years to construct and fit out the warehouse, which will thenn have good transport links, room to expand its product offering and be fitted with Warehouse Management System technology to provide operational efficiency. These costs will be funded from James Latham's existing cash resources.
"The NDC will provide more control and security over the storage of imported products, help support development of value-added products and allow the Company to increase its product ranges and improve stock throughput," said James Latham.
"The NDC will also improve the internal distribution service within the UK, allowing depot locations to hold a wider balanced range of products and improve service and product availability for customers and the business to continue to grow through the existing depot footprint."
As of 0850, James Latham shares were up 4.07% at 1,150p.
Reporting by Iain Gilbert at Sharecast.com
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