Tag: Finland

Siemens to supply Itella, Finland, with combined parcel and bundle sorting systems worth a total of about 50 millions euros

Posted by | Aug 13, 2008 | |

Siemens Mobility Division has won an order from Itella, the Finnish Mail and Logistics Service, to equip its mail centers in Helsinki, Kuopio, Oulu and Tampere with new sorting technology. The center in each of these towns is to be equipped with a parcel and bundle sorter system (PBSS), and a tray handling system (THS) for letters and flats. It is the first time in this sector that these technologies for handling and sorting different types of mail are being combined. Siemens will be handling this order together with Interroll Automation (PBSS) and Cimcorp (THS). The total value of the order is about 50 million euros. The systems are scheduled to come into operation between the middle of 2009 and the beginning of 2011.

A combination of technologies for sorting different types of mail items has never before been implemented in the postal sector. The close intermeshing of the technology and timing of these two logistics projects together with stage by stage installation while operations are running are presenting tough challenges. Both projects are part of Itella’s major investment of 160 million euros in mail sorting facilities. Itella is investing in automation technology to increase the efficiency of its mail sorting and improve its ergonomics and quality.

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Interim Report for January-June 2008: Increased Costs, Reduced Profitability

Posted by | Jul 23, 2008 | |

– Itella Group’s consolidated net sales for January–June totalled EUR 923.5 million, up by 8.5 per cent. The share of international operations was 29 per cent.
– Consolidated operating profit for January–June totalled EUR 43.9 million, down 33.1 per cent year-on-year. EBIT margin fell to 4.8 per cent. Profitability was especially reduced by the sharp increase in labour expenses and increased fuel costs.
– With regard to Itella Information’s early-year company acquisitions, the Polish subsidiary began operations in May, and the joint venture with Norway Post in June.
– In April, Itella Logistics entered into an agreement concerning the acquisition of Russia’s leading provider of warehouse services, NLC (National Logistic Company). Official permissions required for the acquisition have been received, and the transaction will be concluded in August.

Jukka Alho, President & CEO of Itella:

“The economic downtrend did not affect the demand for Itella services in Finland, but road freight volumes in Denmark and the Baltic region turned down. Demand for logistics services remained strong in Russia. Against the European trend, letter mail delivery volumes increased by 3 per cent in Finland, while newspaper deliveries decreased by 3 per cent.

The increases in volume and prices could not compensate for the sharp increases in fuel and salary costs, leading to a reduced profit. However, the profit performance met expectations. The tight situation caused by increased costs is expected to continue during the second half.”

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Itella’s automated parcel terminal pilot has ended

Posted by | Jul 10, 2008 | |

The three-month-long automated parcel terminal pilot at Itäkeskus in Helsinki ended at the end of May. All parties who took part in the trial were satisfied with the pilot.

“In particular, we received plenty of positive feedback from the consumers so, according to the pilot, the reception of the concept and manner of receiving parcels at the terminal was positive,” reports Aku Happo, Director of Itella’s Express and Parcel Business.
The costs of the automated concept rose higher than expected, and Itella has not yet made a decision on the future of the automated terminals. In addition, the decision-making schedule remains unclear.

The new automated parcel terminal enabled customers to choose between different options to receive their parcels. They could pick up a parcel from the post office or from an automated parcel terminal, which has 50-100 parcel lockers, or even have it delivered to their home.

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