As a result of the expansion, PepsiCo UK will now be able to store more vehicles at the site, which will significantly reduce its delivery fleet distances, a statement from the firm revealed.
The investment will also triple the size of its storage facility, where it produces and distributes well-known brands such as Quaker Oats.
Jane Burkitt, PepsiCo UK’s senior supply chain director said: “I’m delighted to reveal our expansion today. We’re seeing impressive growth across our brands, including Quaker Oats ,which we store here in Peterlee.
Increase in demand
“Quaker has grown in the UK by 22% in the last three years and, with such an increase in demand, we’ve not only invested to produce more but also to store more Quaker Oats as they begin their journey to breakfast tables across the country. Our expansion will help us to keep up with demand for many years to come.”
A number of "green features" have also been introduced on-site, including a 100% rainwater harvested fleet vehicle wash, energy-efficient cranes, low heating requirements and need-activated lighting, according to the firm.
To further minimise the building’s environmental footprint, 99% of the construction waste at the site will now be recycled.
Packaging from the new energy-efficient cranes has also been used to create on-site allotments for employees to grow their own fruit and vegetables.
In addition, the site is hoping to maintain its zero waste to landfill status by using all organic waste from the on-site canteen for composting.
Grahame Morris, MP for Easington, said: “I am delighted that this significant investment signals PepsiCo’s continued commitment to Peterlee and the 400 people it employs in the area. I also welcome the green initiatives that will ensure this is an environmentally, as well as economically, sustainable investment.”
Multi-million pound investment
The Peterlee expansion is the second multi-million pound investment PepsiCo has made in the UK food manufacturing industry this year.
Last month, Prime Minister David Cameron welcomed the firm’s announcement that it would invest £14.4M to increase the capacity of its Quaker Oats site in Cupar, Fife, partly to meet increasing export demands.
Speaking on February 16, Cameron said: “Quaker and Scott's Porage Oats have a long heritage here in the UK and PepsiCo's further investment of £14.4M is a welcome example of its continued commitment to Cupar and to Britain.
"The firm’s continued success is testament to the skill, expertise and hard work of the people here at Cupar and I'm delighted to see the business going from strength-to-strength, expanding the site, creating jobs, and increasing their exports abroad.”