New jobs have been created at a fast-growing haulage and distribution business which has invested £750,000 in a new warehouse and launched new services.

R M McDowell Haulage and Distribution Ltd has hired 17 extra staff after opening the new warehouse at Aireside Business Park, Keighley , with backing from Yorkshire Bank’s Bradford-based business banking specialists through its Investing for Growth initiative.

The company, which has increased turnover by £3 million to £12.5 million in the last 12 months and employs around 150 people, has started a five-year rolling contract to provide its new ‘pick-and-pack’ service to Swiss hair and beauty products manufacturer, Mibelle Ltd, which has its UK base in Bradford.

McDowell’s new ‘pick-and-pack’ operation collects, sorts and selects products from manufacturers’ before repackaging and delivering to individual customers. It has also enabled McDowell’s to win a further long-term contract for leading hair care company Lee Stafford, whose products are exported to more than 30 countries.

McDowell is also launching a home delivery service handling collections and deliveries across the UK for online retailers. The service will use McDowell’s developing national depot network.

The company opened a depot in Glasgow, in 2011 and it’s Bristol site opened earlier this year, creating seven jobs. A new Bedford depot , which will create another seven jobs, is due to open before the year end.

Managing director Roger McDowell, who founded the business with a single vehicle in 1976, said: “Until our new warehouse, which previously belonged to Ponden Mill, became available, we intended to build a warehouse on our site following planning permission being granted by Bradford Council.

“However, Yorkshire Bank has once again demonstrated its faith in us, in spite of the tough economic outlook. Acquiring this warehouse means we can hold a further 4,000 pallets, it has helped us to launch the ‘pick-and-pack’ service, and has created new jobs and get up to speed quickly for Mibelle – with whom we are currently exploring international service options."

Mr McDowell said the firm still planned to develop a 20,000 sq. ft, warehouse in due course, to help it meet demand for value added services.

"We’re pleased to be expanding and creating jobs at this difficult time. Yorkshire Bank is a long-term partner of our business and has always been supportive of our development plans,” he added.

Jason Middleton, business partner at Yorkshire Bank’s West Yorkshire Business Banking Centre, said: “Increases in oil prices during the last few years have not made life easy for haulage and distribution businesses. However, McDowells is an experienced and creative company which has continuously invested and developed its services and Yorkshire Bank is pleased to be supporting its further expansion.”