Jaymac secures expansion backing

Investment fund Develop North has provided a £2.2m funding package for the pallet supplier to build 17,000 sq ft of warehousing and manufacturing space in Darlington.

Develop North is an investment fund providing loans to property developers in the North of England and Scotland, managed by Newcastle-based wealth manager Tier One Capital.

The new facility is being built on the Faverdale Industrial Estate on a 3.7-acre site. It will feature a pair of connected industrial units, representing a combined 17,000 sq ft which will be used for the storage, repair and supply of pallets for the food, industrial manufacturing and medical industry.

Jaymac Pallet Services is a family-run business founded in 1997. It has its main facility in Team Valley, serving the Tyne and Wear region.

The site will operate 24 hours a day and will create in the region of 30 jobs once fully operational.

Jaymac, which is working with Rowlands Gill contractor STP on the project, said that this, its fourth site, will be crucial in getting closer to parts of its growing customer base, particularly in North Yorkshire.

Since it was founded in 2017, Develop North has provided funding to support the construction of 34 residential and commercial projects across the North East of England and Scotland.

These projects have received debt funding totalling £73m, which has created an estimated development value of £186m, the firm said.

Brendan O’Grady, fund manager at Tier One, said: “We’re delighted to be supporting Jaymac Pallets’ North East expansion with a funding package that will create a modern, sustainable facility in a key location in Darlington.

“We are excited to support another North East development looking to create jobs and promote economic development in the region, both of which are key objectives of Develop North.

“The management team has ambitious plans to grow the business, delivering local jobs and encouraging skills development through its apprenticeship schemes, alongside its sustainability activities, which offer its clients waste solutions through its Recover, Repair, Re-use and Recycling services.”

Jay Macari, managing director of Jaymac Pallet Services, said: “Jaymac Pallet Services appreciate the support offered from the team at Tier One Capital and Develop North enabling our business to grow and, in turn, support the local community.

“The build represents the next step in Jaymac Pallet Services’ strategy to become the most sustainable pallet supplier in the North of England. The site has been designed with the environment in mind and moves us closer to our key customer base.

“The extra space that the site brings also allows us to extend our wider solutions offering, enabling us to store, sort and unpack goods in response to strong customer demand for these services.”