A Criccieth-based food company is set to open a new depot in Shropshire as it plans its expansion into the West Midlands.
The Welsh food distribution giant, Harlech Foodservice, is partnering with North-Wales-based haulier Farrall’s.
The recent turn of events started with a meeting between David Cattrall, managing director of Harlech Foodservice, and Matthew Farrall, head of Farrall’s.
As part of the deal Harlech will operate from part of Farrall’s new depot in Telford, Shropshire.
Harlech Foodservice has been on an ambitious expansion scheme, which has resulted in two new sites in South Wales in the last 12 months alone.
These sites are located in Merthyr Tydfil and Carmarthen.
The company has already employed 15 sales staff and drivers there, and managed to acquire rivals Celtic Foodservices, based in Pembroke Dock in Pembrokeshire.
The launch of the Telford depot is part of a £6 million plan, which aims to create an additional 150 new jobs.
Harlech Foodservice and Farralls will work together (Image: Mandy Jones)
This expansion is fueled by the company’s recent performance, where it has seen an increase in sales from £32 million to a record £50 million, with profits surpassing £2 million over three years.
Ian Evans, Harlech’s head of operations, explained the circumstances surrounding the expansion.
He said: "At that meeting David mentioned that we were looking for a new base in that area and it turned out that Farrall’s had just opened a new site in Telford and there was spare capacity.
"They’ve agreed that we can use the site as a base to work from and initially we will employ five drivers there along with another driver here in Criccieth."
Harlech will begin by deploying five lorries to the Telford depot with potential for more if growth opportunities arise.
Matthew Farrall echoed Mr Evans' sentiments, stating how they are continuously seeking new markets to expand into.
He said: "This is a relatively new area for us but we see its potential and there is spare capacity on the site which we’re happy to partner with Harlech.
“We believe in forging partnerships with other businesses to the benefit of both and that is the case here – we are both in the distribution business but not in competition so this makes sense.
“We share many of the same business principles as Harlech – both companies are growing and at the same time are committed to reducing their carbon footprint in sectors where that isn’t easy to do but we have both taken steps to do so."
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