A large manufacturing facility in Gateshead’s Team Valley, formerly operated by De La Rue and known for printing over two billion banknotes annually for more than 25 countries, is set to be auctioned. The site, which also produced UK passports, stamps, and security labels for various products, closed permanently in 2023 after more than 50 years of operation.

The factory, spanning roughly 10.4 acres with approximately 279,168 square feet of industrial space, was once a major employer in the North East, providing jobs for over 600 people. The closure marked the end of a gradual decline that began in 2018 when the UK Home Office awarded the passport printing contract to Gemalto, a Franco-Dutch company. This contract shift ended De La Rue’s decade-long tenure in producing UK passports, including the post-Brexit blue design, with the government citing projected taxpayer savings of around £120 million.

The decision to transfer the contract to Gemalto sparked criticism due to its impact on regional employment, threatening at least 200 jobs in the North East. De La Rue’s then-CEO challenged the government’s move but ultimately ceased passport printing operations on Tyneside by 2020. Approximately 250 jobs were lost at that time, though a smaller authentication unit remained on-site for several years.

In July 2025, De La Rue was acquired by a U.S. private equity firm and subsequently delisted from the London Stock Exchange. Now, the former De La Rue production facility, located on Kingsway South within Team Valley Trading Estate, is scheduled for auction on July 29, managed by Savills. The property is offered as a long leasehold with the lease running from June 1964 until January 2049, carrying an annual ground rent of £30,750.

The site comprises extensive production and workshop spaces, over 23,000 square feet of office accommodation, a plant room, canteen, locker rooms, external storage areas, and parking for approximately 250 vehicles. Savills commercial auctions lead George Goucher described the property as one of the region’s largest industrial opportunities in recent years, emphasizing its scale, flexibility, and premium location within the North East.

With a guide price of £500,000—equating to around £1.79 per square foot—the auction is expected to draw significant interest from potential buyers seeking to repurpose the facility for new industrial or commercial uses.