OREANDA-NEWS. March 16, 2012. A new steel  distribution centre has opened on Teesside to provide a faster and more  efficient service for the construction industry.

Tata Steel has  invested 3.1 million to create the new facility, which is located on the  company’s Lackenby site, adjacent to its Teesside Beam Mill.

The opening of the  centre has already led to the creation of 30 new jobs, which have been filled  by Tata Steel employees redeployed from the company’s Teesside Beam Mill and  Steelpark distribution centre in Wednesfield, West Midlands. Further jobs could  be created within the new facility in the future if  improved market conditions lead to the centre handling larger  volumes of steel products. 

The new centre  will be responsible for managing and distributing around 100,000 tonnes of the  company’s construction steel stock from the Teesside Beam Mill, the sections  mill in Scunthorpe, North Lincolnshire, and Tata Steel’s tubes mills in Corby,  Northamptonshire. 

Director of the  new facility, Rob Ridge, said: “The steel was previously transported to our  Steelpark distribution centre in Wednesfield, and other service centres, before  being transferred to the customer. The Wednesfield site will still process a  large number of the steel sections, but it is anticipated the vast majority  will now be delivered to the customer straight from the Teesside service  centre.

“This is a much  more efficient way of handling our steel sections that will bring cost saving  benefits to Tata Steel, while also speeding up delivery for our customers.

“We will now be  able to offer our customers an improved delivery service, with shorter lead  times throughout the UK and Ireland.”

As well as  providing customers with faster and more efficient delivery of steel sections,  tubes and flat products, the new facility will reduce the company’s impact on  the environment and reduce its transport costs.

It is anticipated  the new centre could reduce the amount of movement throughout the supply chain  by as much as 10,000 miles every month.

Steelpark in  Wednesfield will focus on exploiting its processing capability, shot blasting,  cutting, and growing its current levels of business within the retail market.

Sales and Marketing  Director, Sector Construction Structures for Tata Steel, Ian Beveridge, said:  “Tata Steel is committed to investing in the future of its business and this  scheme will provide significant cost-saving benefits, as well as ensuring the  business is in an ideal position to meet the demand from our customers when the  construction markets begin to recover from the global downturn.”