£6.5m steel store to support the automotive industry

Multimodal specialist AV Dawson has opened a £6.5 million steel store designed to support the North East’s automotive industry.

The facility is said to be the only rail-served, energy efficient automotive steel store of its type in the UK.

Family-run firm AV Dawson is a key player in automotive steel logistics in the North East and has invested in the 102,263 square foot store so that steel producers can meet demand from the region’s automotive industry.

The facility is the third and final phase of the 77-year-old company’s ambitious £12.5m growth plans, which have been part-funded by £1.2m from the Government’s Regional Growth Fund.

The plans, which have included building a new £2.6m intermodal rail terminal, Tees Riverside Intermodal Park (TRIP), and a new £3.4m deepwater quay, have generated 62 new jobs, being the total working for Dawson to 242.

The store has an innovative air handling dehumidification system to prevent condensation and ensure the steel is kept in pristine condition with both heat and power being supplied by ground source heat pumps driven by solar panels.

The store, which is capable of providing storage for up to 58,000 tonnes of steel coil, features a rail track running direct into it from Middlesbrough Goods Yard. More than 270,000 tonnes of steel per year will arrive by rail from Tata Steel in Port Talbot, South Wales before eventually heading by road to Sunderland-based car giant Nissan on the back of Dawson’s specialist steel coil carrying trailers.

Gary Dawson, MD of AV Dawson, said: “The facility is conditioned to hold steel in pristine condition indefinitely, enhancing quality, driving efficiencies, and building confidence in the supply chain. The green credentials of this route are impressive, with steel moving by train from South Wales to Middlesbrough, before being held in our renewable energy powered store and final local area delivery using the most fuel efficient trucks.”