Itella to build new 70,000 sqm logistics centre
Finnish operator Itella Logistics has confirmed it is to build a new logistics centre in partnership with retailer Rautakesko. The logistics centre will be 70,000 square metres in size and based in Pennala, Orimattila, next to Itella Logistics’ existing service warehouse on Jokimäentie.
The move comes after the companies agreed on the centralisation of Rautakesko’s domestic warehousing. Construction work will begin in May, and will be completed in June 2013.
The property will have state-of-the-art warehousing and heating technology.
As a result of the expansion, Itella’s storage space in Pennala will exceed 100,000 square meters.
In addition to Rautakesko’s hardware and agricultural products, Pennala will be home to Itella Logistics’ service warehouse functions related to interior decoration and fashion logistics in the Lahti region.
“The new logistics centre will also account for Kesko’s environmental policy in a positive manner. Due to business growth, we have been forced to implement additional space solutions in warehousing, which has increased the number of warehouses to five. For our customers, this will result in a more cost-effective and environmentally sound service of a higher quality”, said Olli Salmivaara, logistics director of Rautakesko.
Jukka Pyykkö, director, Itella Logistics, said: “Our long-term partnership with Rautakesko and the recovery of the economy makes it possible for us to continue the Pennala expansion project. The total value of the investment is EUR 61.5m. This is a significant investment in the economic zone of Lahti, with excellent connections throughout Finland and good opportunities for obtaining workforce.”
Itella Logistics is Rautakesko’s international logistics partner operating in Finland, Sweden, Norway, Estonia, Latvia and Russia.
The partnership covers the warehousing, terminal functions and transport of hardware and agricultural products.
Itella Logistics has provided Rautakesko with warehousing services in Finland since 2002. In December 2010, the partnership was expanded through a transport agreement covering Finnish warehouse deliveries.
