Bluebay Building Products will invest in its fifth depot on New Cut Lane, creating seven jobs which could rise to 11 within 18 months.
The company currently employs 59 people across its fourth other bases in Cardiff, Luton, Gateshead and Swindon.
Managing director Nigel Howell said: “We opened a depot in Gateshead in 2008 and growing economic activity, particularly in the North West, has ment we’ve felt in necessary to invest in this new depot.
“It will ensure that we can distribute products on a next day delivery basis to Manchester, Liverpool, and Sheffield as well as surrounding areas.
“I think we are seeing this upturn because of a combination of government initiatives such as big infrastructure projects in Manchester and Merseyside and a general improvement over the last couple of years in conditions in the civil engineering market.”