AT LEAST 100 new jobs are likely to be generated - 30 of them over the next year - by the move of JA Magson into a massive new warehouse on Clifton Moor, York.
The long-term figures were revealed as the wholesale distributor of stationery, toys, greeting cards and non-food Christmas items prepares this month to move all its warehouse staff from its headquarters in Audax Road, Clifton Moor, to the former packaging plant of Lawson Mardon in nearby Kettlestring Lane, which is nearly three times the size.
The 140,000sq ft building, where Kit Kat wrappers were printed and which was empty for more than two years, has had to be demolished internally down to its shell so that JA Magson can start its 17-year lease in this same year that it celebrates its 75th birthday. Freehold landlord, a Scottish pension fund, is sharing the cost.
Office staff will transfer by September and a second warehouse for toys in James Nicholson Link, Clifton Moor, will continue to be used until its lease expires next year, when all its goods transfer to the old Lawson Mardon building. By then all 259 York staff will be under one roof.
The firm employs a further 92 people at depots in Glasgow, Hull, Runcorn, Banbury, Ipswich and Uckfield.
Sally Wright, JA Magson's business services manager, said: "It's almost as though we have been holding fire on new business until we have found a warehouse of the right size. Now there are new clients waiting in the wings and expansion of staff is inevitable - 30 jobs this year and at least 100 over the next three to five years."
The move means that the lease on the 50,000sq ft Audax Road warehouse in Clifton Moor is now up for grabs through Blacks Property Consultants and FPD Savills at a yearly rent of £200,000. It has ten years to run but hopes are high that even more new jobs can be brought into the area.
Andrew Hedley of Blacks said: "Nobody takes on an air conditioned business-ready 50,000sq ft warehouse to have a couple of staff sitting in the corner. By definition it is bound to be let to a large company such as a big warehouse/distribution operator looking to use the ring road links to service the North - and all that can mean in new jobs. "
The changes for JA Magson come as the firm was never riding higher. Started in York by John Magson in 1929, it developed as a small family business for the first 50 years.
Since the late-1980s the firm has been on the acquisition trail that has triggered a phenomenal 650 per cent growth in turnover - from £8 million in 1994 to £36 million last year and sales figures for 2004 estimated at £40 million. It is now a major distributor for leading toy brands including Hasbro, Mattel, Zapf Creations and Jakks Pacific.
Managing director Ian Magson said the new warehouse would house 10,000 pallet spaces and was "a response to our growing product portfolio as well as the increased demands of our customers".
Updated: 11:24 Tuesday, July 13, 2004
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