The 18,580sqm former Co-op distribution site in Wellington is currently in the process of being repurposed to meet the packaging company’s needs and will initially function as a distribution centre for its Desborough and Selby manufacturing facilities.

The company, which primarily manufactures corrugated packaging for the food and drinks industries, intends to install three converting lines at the site by the middle of the summer to enable it to provide its full product range of cases, die-cut containers and multi-point glued products to customers in the South West.

Managing director Richard Coward said that the move was in response to demand from exiting customers: "Packaging manufacture from our Desborough and Selby factories will initially be transported to Wellington in bulk loads. Customers can then call off by batch, meaning we can offer a true just-in-time service for the South West."

"The speed to market is important to our customers and this gives us the ability to react very, very quickly," he added.

Rigid has invested in one Bobst line for the site and will redeploy one machine each from its Selby and Desborough sites, which will then be replaced by two Latitude flexo-casemakers. The company did not want to reveal further details regarding the new equipment.

Coward said that 30 new jobs would be created at the site in the first instance when it acts as a distribution centre and an additional 30 to 50, depending on demand and shift pattern, will be created when the converting lines come into service after the summer.

The Wellington operation should generate more than £10m worth of new business over the next few years, he added. Rigid's turnover is currently £75m, while parent company VPK generates sales of around €700m a year.

Coward said: "We are following the Rigid business model of continuing investment, continuing growth and ensuring that the growth is profitable.

"At a time when the nation is struggling with poor levels of growth and investment, it is refreshing to have some good news. We are really optimistic about this new site in Wellington – not just for the benefit of our customers, but also for the local community."