A Leamington Spa packaging manufacturer is expanding its warehousing capacity by 45% with a major investment in a new distribution hub to support business growth and faster deliveries.
The Box Factory has announced the development of a central distribution facility, which will also free up manufacturing space as the company looks to strengthen its operations.
The investment comes as the corrugated packaging industry faces significant changes, including business acquisitions, site closures and shifting customer demands.
By expanding its logistics capabilities, the company aims to improve supply reliability, maintain competitive delivery times and support growing customer requirements.
The new hub will bring together three existing warehouses and four temporary storage units into a single facility, increasing pallet capacity from 5,500 to 8,000.
Consolidating storage operations will also release space at the company's manufacturing sites, allowing production floor space to increase from 59,000 sq ft to 71,000 sq ft.
The additional capacity is expected to support further investment in production equipment and provide room for future expansion.
Customers are also expected to benefit from faster order fulfilment through reduced material handling, alongside improved stock availability and more efficient distribution.
Covered loading facilities will help minimise weather-related disruption, while operational improvements are intended to support competitive pricing.
Alongside the distribution hub investment, The Box Factory has recently spent £500,000 on another automatic die-cutter to improve production reliability, precision and output.
The business has also upgraded its Shop Floor Data Collection (SFDC) system, introducing a connected network of sensors, machinery interfaces and 33 live visual management screens.
The technology provides production teams with real-time performance information, helping them identify problems, improve communication and make quicker operational decisions.
According to the company, the improvements increased machinery utilisation by 18% within the first three months, while also helping reduce downtime.
The investment has also supported improvements in engineering and maintenance, allowing the business to take a more proactive approach to preventing equipment breakdowns.
Neil Price, managing director and an owner of The Box Factory, said: “Our independent status allows us to be agile and make fast decisions when needed.”
He explained that the company's independence also provides greater flexibility when responding to customers and making decisions about future projects and investment.
Price added: “By investing now, we're creating the foundations for our next stage of growth while ensuring our customers benefit from a packaging partner that continues to expand its capabilities to meet their evolving needs.”
The expansion forms part of the company's wider strategy to strengthen its manufacturing and distribution operations as the packaging market continues to evolve.
Further investment in automation, digital manufacturing technology and renewable energy is also central to its plans for long-term growth.
Based in Leamington Spa, The Box Factory supplies corrugated packaging to high-volume businesses across the UK, providing manufacturing services and stock management solutions.
The company said its continued investment in infrastructure, technology and staff would help customers maintain more resilient supply chains while supporting future expansion.