A global retail giant has committed to investing £15 million into a new distribution hub in Birmingham to serve its customers across the world.

Y International, a subsidiary of Abu Dhabi-based LuLu Group International, is planning to open a new European headquarters on the Advanced Manufacturing Hub in Aston which will create 80 jobs.

The group will process, package and export around 10,000 different products from the new 124,000 sq ft base to more than 160 hypermarkets across the Middle East, Africa, Asia and the Far East.

It works with a wide range of businesses from across the country, transporting UK products overseas, and its suppliers include Coventry-based flatbread producer Mission Foods.

LuLu Group's portfolio includes hypermarkets, shopping malls and shipping, helping it reach a group turnover of £5.2 billion.

A delegation from the group's headquarters visited Birmingham to confirm the deal, making the company the fourth to commit to opening a base at the hub alongside Barberry which is speculatively developing a new warehouse.

City council leader Ian Ward (front left) signs a deal to bring Y International to Birmingham with (from back left) Fahim Mohamed, Mohamed Sanji, Mohamed Althaf and Tony Perks, all Y International
City council leader Ian Ward (front left) signs a deal to bring Y International to Birmingham with (from back left) Fahim Mohamed, Mohamed Sanji, Mohamed Althaf and Tony Perks, all Y International

Y International will join German tool manufacturer Guhring, US hydraulics manufacturer HydraForce and Salts Healthcare.

Director of operations Tony Perks said: "Birmingham has created the ideal base for Y International, forming an integral part of LuLu Group's European expansion plans.

"When comparing potential locations, Birmingham offered a cost-effective and well-connected location, as well as readily-available, high-quality space, making our decision easy.

"The acquisition of the land gives us the opportunity to construct a large purpose-built production facility.

"This will enable the company to increase sales and is expected to result in an increase in staff from the existing 160 to 240, all recruited from the local area."

The Advanced Manufacturing Hub is jointly owned by Birmingham City Council and Homes England and inward investment agency Business Birmingham is supporting the transition.

Council leader Coun Ian Ward added: "The decision to make the Advanced Manufacturing Hub LuLu Group's European headquarters is fantastic news for the region.