Rainham Steel acquires 14-acre North Lincolnshire site

By Scunthorpe Telegraph | Posted: 2 Jan 2019

‚ÄčA major Scunthorpe employer has reaffirmed its commitment to the area after acquiring a further 14-acre site, with jobs likely to follow.

Rainham Steel has successfully secured a deal for the former Pet Polymers plant on Flixborough Industrial Estate, which has lay fallow since being demolished in 2013.

It was used to produce plastic bottles and food packaging, and had been marketed with a £1 million price tag.

The purchase by the structural steel stockholder and distributor brings investment in North Lincolnshire to £4.5 million in the past year for the 80-strong team, following a significant spend on the original Mannaberg Way base. 

The Mannaberg Way base. 

New craneage and a doubling of the warehouse completed last year, ahead of this deal being brought over the line.

Francis Micallef, operations director, said: “Rainham Steel is committed to strengthening its commitment to South Humberside. The site has been purchased as part of our long term growth plan which includes increasing our workforce and distribution facilities in Scunthorpe. The site will strengthen our position as the largest independent steel importer into the UK while maintaining our ability to continue working with our local steel section supplier, British Steel. 

“The purchase of the site and its position close to the wharves of the River Trent also helps to secure employment through the use of the local docks in the area.”

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Work on preparing the site is anticipated to start soon.

The Mannaberg Way base.

While headquartered in the Essex town it takes its name from, the 2002 opening of the flagship 55 acre site in Scunthorpe saw North Lincolnshire become the central distribution point, housing all of the structural sections and structural hollow sections it supplies. It is also the main sponsor of Scunthorpe United, having taken over the baton from British Steel this season.

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Pet Polymers closed in 2006, citing economies of scale, with a huge Lithuanian plant taking the market by storm, having operated with an 800-million bottle annual capacity from 1992.

Duncan Willey, the chartered surveyor who completed the deal for PPH Commercial, said: “Rainham Steel is obviously a major employer in Scunthorpe so this sale has to be viewed as a major positive for the town and its staff because it emphasises their commitment to the area.

The Mannaberg Way base. 

“The importance of the steel industry is not lost on anyone in the town and this acquisition suggests that the company remain ambitious and keen to grow.

“The land, which had previously been used by Pet Polymers to manufacture a wide range of plastics, attracted substantial interest from a number of parties as the demolition of the premises has created a completely blank canvas.”

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