DGL to build $5m 'first of its kind' chemicals warehouse in Irongate, Hastings

Auckland-based chemicals specialist DGL Group Limited has announced plans to build a new warehouse facility in Irongate, Hastings. Photo / Supplied

Hastings will soon be the home of a new $5 million chemicals warehouse, distribution and manufacturing centre.

Auckland-based company DGL Group Limited has announced plans to build a new "first of its kind" facility in Irongate, an industrial area just south of Hastings.

A specialist business that manufactures, transports, stores and processes chemicals and hazardous waste, the new facility will help support surrounding regions, said DGL Group founder and chief executive Simon Henry.

"This new facility further expands our footprint in New Zealand, where we see ample opportunity for organic growth.

"Ensuring we have the right facilities, in key industrial areas across Australia and New Zealand, with proximity to customers, is and will continue to be a key priority for our business.

Construction on the new chemicals warehouse facility in Irongate, Hastings, is expected to cost $5 million, with the contract to be tendered in the last quarter of 2021. Photo / Warren Buckland

He said the "strategic" site was chosen based on existing assets and customer demand, as well as the fact that there are also no purpose-built chemical storage facilities in the Hawke's Bay region.

"We saw a significant opportunity for DGL," he said.

"The region is an industrial hub, renowned for its agriculture and forestry, and there is a need for agriculture chemical formulations."

The Irongate location, near main arterial routes with access to both Napier and Hastings via the expressway as well as its proximity to Napier Port, offered significant logistical advantages, he said.

Construction is expected to cost $5 million, which will be funded by proceeds raised from the company's initial public offering in May.

The warehouse will store around 5000 tonnes of chemicals, increasing DGL's total capacity from 128,000T to 133,000T.

Local consulting engineers Strata Group have been engaged to design the new facility with the construction contract to be tendered in the last quarter of 2021.