Wellness business BWX will expand in Melbourne, committing to a manufacturing plant at south east Clayton.
The occupier was considering three sites – all in growth routes – when it launched a $50 million equity raising to fund its construction, last July.
Its new facility, with a 14,785 square metre warehouse and 2878 sqm office, will create four automated high-speed production lines.
BWX currently has nine semi-automatic low-speed lines, so is expecting manufacturing capacity to treble.
Initially intended by landlord ESR Australia as three tenancies, the Clayton warehouse will also contain a 330 sqm enclosed loading dock and 2805 sqm covered by awnings.
The occupier has two headquarters – in Melbourne at Dandenong South and San Francisco’s North Bay (Petaluma).
It also trades from an office in Leicester, midway between London and Manchester.
BWX brands include Andalou Naturals, Mineral Fusion, Nourished Life, Sukin and USPA.
ESR Clayton Business Hub
ASX-listed BWX is the first company to commit to the 6.45 hectare ESR Clayton Business Hub at 45-49 McNaughton Road, which has been seeking occupiers since last year.
The estate is due for completion shortly.
The landlord paid $34.71m for the site making way for it, in October, 2019.
It is intending to build 38,900 sqm in configurations from 2000 sqm.
BWX is expected to move in at the end of the year (story continues below).
Jewel in our crown: BWX on Clayton
In announcing its half-year results last week, BWX chief operating officer Rory Gration described the property as “our jewel in the crown” and a “transformational growth opportunity”.
It will bring the company’s manufacturing and support facilities under one roof, he added.
“[The property] will transform our production capability from what is currently a semiautomatic facility to a cutting edge, highly automated manufacturing plant that really is a pillar to support our next phase of growth,” he said.
“It is expected this facility will step change our operational and financial outcomes and it will allow us to outperform our existing three-year strategic plan,” according to the executive.
“We are looking at manufacturing efficiencies and the de-risking of our supply chain and improvements in gross margin”.
Mr Gration added the factory would deliver productivity and efficiency improvements, reduce material waste by 50 per cent and shrink the cost per unit produced.
Frasers strikes smaller deal in the area
Meanwhile, Frasers Property Industrial has secured efm Logistics at its new Rubix Connect estate, at Dandenong South.
Upon completion in mid-2021, the occupier will close two facilities in the suburb.
The warehouse will contain 15,580 sqm of area and 107 car parks.
Ozito was the first business to rent a Rubix space, with a 19,815 sqm commitment last August.
Last year efm leased a 23,322 sqm warehouse LOGOS was building speculatively at the Altona Logistics Estate, west of Melbourne.