Work on the 4,200sqm extension to the site in East Yorkshire commenced last month and should be finished by the autumn.
The investment follows Cepac’s £1m spend to double the size of its Doncaster site and boost its digital operation, with work on the site beginning in the spring and due to finish at the end of September.
Away from Doncaster and Rawcliffe Bridge, Cepac has sites in Rotherham, Darlington and Alfreton.
Since purchasing the site in 2013 from DS Smith, Cepac said it has doubled turnover, with staff levels increasing from 75 to 125. Its specialist products are supplied to a wide variety of sectors, mainly automotive, with Jaguar Land Rover a major customer.
Group sales and marketing director Steve Moss said: “It has always been our intention to expand the site and it’s gone from 75 to 125 people so is now at the point where it can’t get to the next stage without additional workflow.
“Initially it will allow us to improve workflow and relocate kit in certain areas. From there it allows us to put in additional equipment. The benefit is immediate in as much as additional workflow allows us to run machines faster and more effectively.”
Moss added that Cepac would likely be investing in additional machinery in 2018 and 2019. He said progress at the Doncaster site was going well and “almost complete”.
Rawcliffe general manager Richard Moore said the improvements to the site will “secure the long-term future of Rawcliffe and underpin its continued growth”.
The building has been utilised for the production of paper-based materials for more than 100 years and during the digging process Cepac said a number of notable artefacts from the site’s history were unearthed.
Moss described circa £100m-turnover Cepac as the “last remaining and largest independent packaging provider in the UK”.
“We provide people with that independent alternative, which the other groups cannot, and the fact we are independent and rather quick on our feet means we can drive innovation faster than the competition,” he added.
