The Billingham-based firm is set to open its new 15,000 sq ft warehouse near Darlington early in the new-year.
The expansion will create three new jobs and improve efficiency by increasing capacity at its existing 55,000 sq ft warehouse.
Managing Director David Nicholson said: “This has been a year of growth for Nicholson’s Transport and for the first time we are employing almost 60 staff.
“There has been a significant increase in our Darlington customer base and we made a sensible decision to open an additional warehouse to better service those clients.
“But it also means that we can improve efficiency at our main site in Billingham, freeing up capacity there so that all of our customers can experience the same high levels of service.”
Six staff will be employed at the new site – which is located on the Durham Lane Industrial Estate – including three newly created positions, while new plant and machinery has also been bought.