Advanced Insulation has invested more than £8million in a new factory, filling the final berth at St Modwen's Gateway 12 business park at Hardwicke.

And St Modwen has been given the go-ahead for the second phase of the neighbouring St Modwen Park Gloucester.

Leading materials solution provider Advanced Insulation has signed a 10-year lease on the 65,000sq ft site site close to its existing head office in Hardwicke.

It says the move was prompted by increasing demand for its subsea buoyancy products and the expansion will significantly increase capacity, implement efficiency improvements and include bespoke test facilities.

Managing director Andrew Bennion said: "This is a significant financial investment for us, but one that will enable us to increase capacity to meet market demand and will enhance our ability and reduce the time to develop and test new buoyancy products to meet the changing needs of the subsea market.

"We have demanding growth objectives, and I'm delighted that we are able to proceed as planned despite the current climate we're operating in, due to the pandemic".

The programme will see all buoyancy production transferred from its current production facility in Plymouth which will focus on developing and growing the marine sector of the business.

Simon McKeag of Ash & Co, who are joint agents for Gateway 12, said: "The letting to Advanced Insulation backs St Modwen's commitment to speculatively develop in the Gloucester area and with Gateway 12 fully occupied, the focus can now turn to St Modwen Park Gloucester.

"The timing of the latest deal is particularly pertinent and confirms demand remains strong for high-quality industrial and logistics space in prime locations in the county."

The £22million Gateway 12 development's 285,000sq ft of space is fully let with Advanced Insulation joining Amazon, ProCook, Samworth Bros, WMB Logistics and Warwick Fabrics.

Phase two of St Modwen will deliver four new units ranging from 36,000-56,000sq ft and is due for completion next summer.

St Modwen Industrial & Logistics development manager James Irwin-Singer said: "We're pleased to be welcoming Advanced Insulation as our final tenant at Gateway 12, which joins a raft of leading businesses who already call the business park home.

"Now fully let, this deal is testament to the overall success of the scheme and further bolsters our decision to undertake further speculative at development at nearby St Modwen Park Gloucester.

"With approval for the second phase at the site, we are able to deliver our market-leading warehouse units to a range of business sizes, providing maximum flexibility in a strong and well-located commercial market."

The first phase of the development saw three units completed in January with water treatment and magnetic filtration manufacturer ADEY Innovation becoming the park's first occupier, followed by cookware retailer ProCook.