Dekapak fights back with move to new site

A packaging and sweet manufacturer which almost disappeared after losing its main customer is fighting back with a move to new premises.
Dekapak Solutions' new premises at Goldthorpe Industrial Estate in Rotherham.Dekapak Solutions' new premises at Goldthorpe Industrial Estate in Rotherham.
Dekapak Solutions' new premises at Goldthorpe Industrial Estate in Rotherham.

Dekapak, which packed all of Cadbury’s selection boxes for the UK until last year, was left with just five per cent of its business after Cadbury moved its production to Poland.

The firm, which used to pack 250,000 boxes a week between June and December for the confectionary giant, went into voluntary administration, changed its name to Dekapak Solutions, and decided to look for new premises after it was unable to sustain its 80,000 sq ft building in South Kirkby, West Yorkshire, where it had operated for 30 years.

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Director Jim Gaskell said: “We were only using a third of the building. It wasn’t working for the landlord and it wasn’t working for us so we decided to find a fit-for-purpose building.”

The company, which was forced to downsize from 250 to around 40 staff, has moved into 31,000 sq ft of food grade warehouse space at Goldthorpe Industrial Estate in Rotherham where it now manufactures for Monty Bojangles, Creme d’Or, GF Foods and Hancocks among others.

The move will also enable the firm to expand its production of boiled, toffee and chew sweets.

The firm bought Leeds-based sweet manufacturer Candy Makers out of liquidation in 2013 and is planning to expand its sugar-free range.

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“Our main product is a sugar-free product so we are looking to expand that area,” said Mr Gaskell.

“Over the last 12 months the sugar-free area has grown due to a change in people’s lifestyles. These aren’t just products for diabetics any more, it’s people who want to live a healthier lifestyle,”

Because the new site was a food grade warehouse, the company can pack both open and wrapped products, which it wasn’t able to do at its previous premises.

The firm’s turnover has dropped from £14m to £2m, although Mr Gaskell said its turnover had doubled in the last 12 months due to new business wins and innovation.

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He said future growth would come from expanding the contract packaging side of the business as well as sweet manufacturing.

He also plans to appoint up to 20 new staff in the next 12 months.

“Hopefully we will have as good a year next year as we have just had,” said Mr Gaskell.

More than 80 per cent of the firm’s work is for the UK market but it also exports to Australia, Scandinavia and the US.

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Commercial property agent Gent Visick negotiated and completed on the deal for Dekapak’s new premises.

The industrial estate, which is managed by M7 Real Estate, a leading pan - European multi-let real estate asset manager, is now fully-let.

Daniel Walker at Gent Visick, who negotiated the deal on behalf of M7 Real Estate, said: “We are delighted to complete on the letting to Dekapak. The food grade element was a real selling point when marketing the unit and ultimately succeeded in a letting of the whole terrace to a single occupier.”

Victoria Mann, senior asset manager at M7 Real Estate, added: “This multi let estate, comprising of 153,209 sq ft, required proactive hands on asset management to decrease the 20 per cent void and achieve rents beyond the market tone.”

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