A building boom in Bridge of Don and Dyce has prompted Chap Group to open a second concrete plant in Aberdeenshire.
The Westhill-based company has invested nearly £700,000 in the ready-mix site in Belhelvie, to the north of Aberdeen.
Chap’s new facility is inside Balmedie quarry, which is owned by Aberdeenshire Council, and will serve both commercial and residential developments.
The group already has a concrete plant at its Park quarry near Drumoak in Deeside.
Hugh Craigie, joint managing director at Chap, said: “We’ve been pursuing an investment in a second concrete plant within the city for a number of months after we identified a requirement for a facility north of Aberdeen to join our existing plant in Deeside.
“The location of the new plant is significant in that it perfectly positions us to service key commercial and residential developments within suburbs such as Dyce and Bridge of Don.”
Mr Craigie added: “Despite the current challenging economic climate in the North-East, a number of major developments are continuing to come to fruition and demand on the quarry side of the business remains strong.
“This recent investment will enhance our ability to meet both this demand and the requirements of our growing list of clients.
“The quarrying division has been a big part of Chap for decades and remains an integral part of our strategy as we look to continue to pursue opportunities for growth across all divisions.”
Chap was founded in 1976 by Alasdair Craigie, Ian Harper, Frank Anderson and Ian Philip, with the initial of each man’s surname giving the group its name.
The company is still owned by members of their families.
Chap turned a profit of £1.3million on turnover of £37.4million in the year to 30 September, according to accounts filed at Companies House at the end of January.
Earlier that month, the group had unveiled a £20million financing deal after switching to Santander from Clydesdale Bank.
Chap – which employs more than 200 staff – also has civil engineering, commercial property and house building divisions, with Chap Homes working on houses in Aberdeen, Aberdeenshire and Inverness.
The group is also behind plans for Kincluny Village, a development of 1,500 homes at Park quarry on Deeside.
About 500 of the houses have been earmarked as “affordable homes”, with plans for the site also including space for offices and a small industrial estate, as well as a “community hub” and room for educational facilities.
Chap has been consulting with members of the local community on its plans for the quarry since 2011 and said that it could take between 20 and 25 years to fully develop the site.
Local residents fired questions at Mr Craigie and fellow joint managing director Douglas Thomson earlier this month during a meeting organised by Crathes, Drumoak & Durris Community Council.