Expanding supplier wants neighbouring firms evicted Packaging giant threatens to leave city unless council acts

DOZENS of workers could be evicted from a business park to make way for the £15 million expansion of one of Birmingham’s most significant employers.

There are an estimated 50 to 100 people operating at Phoenix Business Park in Tyseley, which is predominantly occupied by small storage firms.

But they have been branded a “nuisance” by Euro Packaging next door, which has warned that if it cannot build on their land it will move out of the city.

The company supplies major retailers around the world and wants to expand its headquarters by developing another large facility which it said would create 300 new jobs on top of the existing 480 people it already employs at the site. It has been in talks with the occupants of the park for 18 months about acquiring the long-term lease of the plot from Birmingham City Council while offering to help relocate the businesses.

Euro Packaging made a formal offer in November 2016 but since then discussions have stalled.

Now parent firm Euro Property Investment has called on the council to use special powers to reclaim the 3.7-acre plot to pave the way for its expansion plans.

On Thursday (May 24) the authority’s cabinet will be asked to approve a compulsory purchase order (CPO) to wrestle back the lease of the park, which would then be renegotiated with Euro Packaging.

But the current tenants object to the move.

A report states: “At the current time 480 people are employed at the Tyseley HQ, making Euro Packaging a significant employer in east Birmingham. Due to the success of the company and the need to diversify into new business areas, Euro Packaging have a pressing need to expand at their Tyseley site.”

It adds: “The only other option would be to consider relocation of the business outside of the city which they state is ‘a measure that we do not want to contemplate although ultimately we may be forced to do so’. ”

Euro Packaging has already submitted a formal planning application for its proposed development, revealing what it may look like.

An application document exposes the tense relationship between the company and park occupiers, stating: “The site is currently used as general storage, scrap metal storage and vehicular parts breaking. However, it is difficult to establish the precise activities that are currently undertaken on the site.

“The current uses cause a nuisance to the Euro Property site and have the potential risk of contamination and environmental impacts such as air pollution and noise.”

Council enforcement officials are also monitoring the site after receiving a number of complaints about the storage and burning of waste.

The park was sub-divided into 16 smaller plots under temporary planning permission which lapsed in 2010.

The latest attempt to regularise it was rejected by the council last year.

Tenants were granted a 125-year lease of the former landfill in 1998.

All costs incurred by the compulsory purchase, including compensation payments, would be funded by Euro Packaging.