Coventry-based John Astley & Sons has sold its landmark city centre site, and is investing £2.5 million in new, purpose-built premises at Coventry Business Park.
Astleys' new complex will include over 30,000 square feet of warehousing, together with offices, and will house the firm's industrial consumables division, which is currently in the midst of a drive to develop its growing national presence.
The group, which has a turnover of £3.5 million and 40 employees, has sold its industrial finishing division - taken over by the Trimite Group.
Trimite is the largest private industrial paint manufacturer in the UK.
Three Astley employees from the industrial finishing division have moved over to industrial consumables and five are now working for Trimite.
The changes are part of a review of Astleys' business strategy.
Astley said Trimite's expertise would enable its customers for industrial paints to continue to receive a high quality service into the future.
Jonathan Astley, Astleys' sales and marketing director, says the firm, which celebrates its 275th anniversary this year, is moving into an exciting new era. "Our aim is to ensure that we have the resources and capabilities to secure the long-term success of John Astley & Sons," he said.
" The Gosford Street premises have served us well for the past 66 years, but the age of the building and its location imposed restrictions on the development of the business. It became clear that any further investment would not have been wise.
"The move to a new site triggered the opportunity to review our overall business strategy, and the directors have now developed a robust plan that focuses on building upon the growing success of the industrial consumables division."
The new location, which will become operational in January, has been chosen to provide easy access to national trunk road and motorway networks, enabling speedier distribution of the firm's 16,000 products, and improving access and onsite facilities for trade counter customers.
A major advantage is parking provision. It will have more than 60 spaces available for customers and staff, as well as extensive off-road loading and unloading facilities.
"Astleys is one of Coventry's oldest businesses, and our continued success has been built on our ability to adapt to changes in our operating environment," said Mr Astley.
"We are creating a sound platform from which we can build for a more prosperous future, and we are looking forward to a flying start in 2006."
The old Astley site has been sold to Unite, the UK's largest provider of student accommodation.
Astleys specialises in workwear, personal protective equipment, cleaning and hygiene products, and hand and power tools.
Mr Astley went on: "The directors believe that the move to new premises and the development of our new business plan have created a robust footing upon which to build Astleys' future success. I am very excited at the prospect of implementing these changes.
"Traditionally Astleys has been known for many things and, indeed, over the 275 years that we have been in business we have undertaken many operations including the manufacture of leaded windows, abrasive wheels and canvas, and printing. We have adapted in what we sell too, in catalogues from the past we list seed potatoes and daffodils, we even had a period when we sold fireworks.
"The business is constantly changing and developing."