Online retail giant Amazon is expanding its operations in East Yorkshire as it advances plans for a £150 million fulfilment centre on development land close to Hull, in a move that follows a muted year of warehouse take-up for the firm.
Amazon has confirmed it will build a large 559,723-square-foot warehouse next to its existing delivery station at Melton West Business Park, which is close to the A63 and down the road from the Port of Hull.
The group has said it acquired a plot of land on Melton West in East Yorkshire in early 2022 and that construction work on the fulfilment centre is due to begin in 2024. The building will have state-of-the-art robotics to improve delivery.
A spokesperson for the online retailer said: "We’re excited about the development and look forward to sharing more details in the future."
The confirmation of Amazon's plans to open a large industrial hub outside Hull comes almost two years after a major planning application for a distribution and logistics operation, speculated in local reports to have been submitted by the e-commerce giant, was approved.
Documents related to that application on the East Riding of Yorkshire Council show designs for an area known as 'Plot E', located to the south of Monks Way East, Melton Interchange (A63/M62) and east of Brickyard Lane, North Ferriby. It was brought forward by local developer Wykeland, which has built the larger Hull business park.
According to plans, first revealed by news outlet Business Live, the scheme will also provide ancillary office space and more than 800 parking spaces, as well as staff kitchen and toilets. The total gross internal area of the development would be more than 2 million square feet.
The documents, drawn up by SMR Architects, added that the development will provide an increase in employment and "will stimulate a positive economic change for the local area".
Amazon already has a 88,000 square foot warehouse in Hull, where it packs and dispatch parcels. That facility is reported to have cost around £30 million to build. The firm says it has invested £2.1 billion in Yorkshire since 2010.
In August, Amazon confirmed it would not appeal a Yorkshire council's rejection of its plans for a 2.86 million square storage and distribution hub close to the centre of Cleckheaton. Kirklees Council rejected the plans in March, citing concerns over the design of the building and the impact on nearby amenities.
So far 2023 has been a quiet year for Amazon in terms of UK warehouse lettings, with figures supplied by Savills showing the group is yet to complete any 100,000-square-foot transactions this year. Increased labour and rising energy costs rose, as well as reduce online consumer spending, are all factors.