Pictured: Simon Nelson with some of the new vehicles at his Belper premises

A Derbyshire distribution company has invested heavily in new plant and equipment after winning major new contracts, bucking the trend in the haulage industry.

Nelson Distribution, a family-run company based at Goods Road Industrial Estate, Belper, has managed to ride out the stormy seas of the economic climate to the point where it has even created 10 jobs and plans to take on more.

It has just taken delivery of six 13.6 tonne curtain side trailers, four 18 tonne rigid curtain side trucks, and two 44 tonne cabs.

Although the company regularly replaces and updates its fleet, this investment of £500,000 is the biggest expansion for many years and takes it near to the full capacity under its operating licence for 80 trailers.

The investment follows winning some significant nationwide distribution contracts for Derbyshire manufacturers who are household brands. The long-term contracts are worth multi-million pounds to Nelson.

This, in turn, followed on a personal success for managing director Simon Nelson, whose grandfather Jack set up the business in 1948.

Earlier this year he graduated from Cranfield University with an MSc degree in logistics and supply chain management after completing a two-year course which was in addition to his normal work.

As part of his course Simon had to define the future strategy of the business which would significantly develop it.

"I'm delighted that in winning and signing these major contracts we have fulfilled the goals that I set for the company in my thesis," said Simon. "We are now on the lookout for more contracts.

"As a result of this investment in our fleet and information technology infrastructure plus a strategic alliance with another company we now have the capacity to tender for all nationwide distribution contracts."

Although Nelson cannot publicly name the firms it has recently won business from it does add to the company's credibility when tendering for new contracts.

The additional workload has created 10 jobs in management and drivers. "We do have some business in the pipeline which will create extra jobs in the new year," said Simon.

Industry figures show that in a tough market 15 per cent of haulage firms are running at a loss and many have closed.

"We won the latest business because we operate from a lean, low-cost position so that this means we can provide a total high quality service at a competitive price," said Simon.

"As a result we have survived the recession and are expanding in difficult times for the economy."

One of the vehicles replaced in the investment was purchased in 2000 and had done 1,067,000 kilometres around the UK - the longest distance that any Nelson vehicle had achieved. 

Driver Ivan 'Ike' Tomlinson, who joined the company in 1998 is delighted with his replacement. 

The vehicles were bought from Mertrux in Derby and trailers from SDC in Mansfield.