A £2MILLION expansion project by Pembrokeshire based Puffin Produce Ltd is proving not just good for the local economy but the environment too.

The Welsh farmer owned potato-growing business is adding a new cold storage facility to its headquarters near Haverfordwest and is using local expertise and materials to help it achieve its business targets.

Award-winning Puffin Produce currently packs around 35,000 tonnes of potatoes a year both for supermarkets and its own Blas Y Tir brand, and the new facility will help meet growing customer demand.

Covering 35,000 sq.ft. the high-tech temperature controlled units can each store up to 1,400 boxes, and are currently being filled with potatoes for use over the winter and next spring.

"The addition of the five new units has added a further 7,500 tonnes to our storage capability," said James Smith, Puffin's commercial manager.

"Therefore we need to buy more potato boxes, and we are delighted that we have been able to use a local manufacturer who is not only based just a few miles away but sources the wood locally."

The first consignment of boxes from James Davies Sawmills Ltd have already been filled, and when complete will total some 3,100 specially crafted potato boxes at a cost of over £225,000.

The wooden boxes, which are capable of holding up to 1.1 tonne of potatoes are made to stringent British Standards (BS7611) which ensure they are capable of being safely stacked eight high in the storage units.

Family-run James Davies Sawmills is manufacturing the boxes at Eglwyswrw near its state-of-the-art £4m sawmill in Cenarth, Newcastle Emlyn. The boxes are then delivered to Puffin by local haulier AJ Carrington & Sons Ltd.

"The timber is FSC certified, mostly larch, and sourced from within 50 miles of the sawmill. We source from Natural Resources Wales estates and private woodlands; much of it comes from south Pembrokeshire including Canaston Woods. Also, we use local hauliers so our carbon footprint is low," said Quinton Davies, whose family established the sawmills in the late 1800s.

"Each box is made by a dedicated team to a specific design and goes through a rigorous process of stress grading. This is the first time we have supplied Puffin Produce and as a result it has created three new jobs in addition to the existing 40 employees."

Puffin's new storage facility at Withybush and purchase of the boxes represents an investment of £2.5m, and is the latest investment undertaken by the company, which has seen rapid growth in both market share and facilities.

This latest phase of development by Puffin has been assisted by the Welsh Government's Processing and Marketing Grant scheme.

"We have had a lot of support from the Welsh Government to increase our business and we have gained new retail customers as a result," said Puffin's managing director, Huw Thomas.

"Also, being able to continue to invest in and grow our company ultimately has a positive ripple effect on the local economy and the sustainability of businesses in this area. We are seeing a positive effect on our farmer growers and local businesses like James Davies Sawmills and that is great news for West Wales."

In recent years with Welsh Government and European Union support some £12.5m in capital expenditure has been invested in the business enabling Puffin to increase its volume sales by 50% and its workforce to 120.

Deputy Minister for Farming and Food, Rebecca Evans, said: "I am delighted to see that Puffin Produce are expanding following financial support from the Welsh Government. Last December, Pembrokeshire Early Potatoes was the third product in Wales to receive Protected Geographical Indication status, which has raised its profile across Europe. We have supported this company since its infancy and it is so encouraging to see it go from strength to strength and now increase its workforce."