Construction firm Owen Pugh expands with £900,000 Gateshead depot

Construction firm Owen Pugh GDC plans to create more jobs as civil engineering division grows with a new Gateshead depot

John Dickson, chairman of the Owen Pugh Group, left, with Andy Parker, HSBC senior corporate banking manager, at the opening of the new depot in Factory Road
John Dickson, chairman of the Owen Pugh Group, left, with Andy Parker, HSBC senior corporate banking manager, at the opening of the new depot in Factory Road

A leading North East construction firm has opened a new £900,000 depot in Gateshead that will accommodate the expansion of its civil engineering division.

Owen Pugh GDC, a subsidiary of the Owen Pugh Group that delivers civil engineering contracts to local authorities and water utility companies, has acquired a three-acre site on Factory Road, Blaydon, to support its growth plans.

The move, aided by a £750,000 finance package from HSBC’s North East Corporate team, was a natural progression for the arm of the business, which has grown turnover from £4m in 2008/09 to a projected £13m for the coming financial year.

Owen Pugh Group chairman John Dickson 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.”

The site, which comprises 15,800sq ft of office and storage space plus car parking, will likewise enable HCS Drain Services, Owen Pugh’s drainage arm, to develop a Northern hub to service a growing client base in Tyneside and Northumberland. Both branches of the business will recruit additional staff, with up to six new employees expected to join GDC within three months.

Longer-term plans for the premises, formerly owned by civil engineering and building materials supplier Burdens, include the transfer of the Owen Pugh construction team, currently based at the Dudley headquarters. The site can also accommodate future business developments.

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