Itella Logistics is to construct a new 70,000 sqm logistics centre for long-term customerRautakesko, the Finnish home improvements store group.
The two companies have agreed on the centralisation of Rautakesko’s domestic warehousing inPennala, Orimattila, which is about 100km north-east of Helsinki. The new logistics center will bebuilt next to Itella Logistics’ existing service warehouse on Jokimäentie in Pennala. As a resultof the expansion, Itella’s storage space in Pennala will exceed 100,000 sqm.
The construction of the new logistics centre will begin in May 2011, and it will be completedin June 2013. In addition to Rautakesko’s hardware and agricultural products, Pennala will be hometo Itella Logistics’ service warehouse functions related to interior decoration and fashionlogistics in the Lahti region.
The property will have state-of-the-art energy-efficient warehousing and heating technology.Collection, for example, will use voice control, and property heating will be based onenergy-efficient terrestrial heat.
“The new logistics center will also account for Kesko’s environmental policy in a positivemanner. Due to business growth, we have been forced to implement additional space solutions inwarehousing, which has increased the number of warehouses to five. For our customers, this willresult in a more cost-effective and environmentally sound service of a higher quality,” explainedOlli Salmivaara, Logistics Director of Rautakesko.
“Our long-term partnership with Rautakesko and the recovery of the economy makes it possiblefor us to continue the Pennala expansion project. The total value of the investment is €61.5million. This is a significant investment in the economic zone of Lahti, with excellent connectionsthroughout Finland and good opportunities for obtaining workforce. Service centralisation under thesame roof enables more cost-effective operations for us. We can also better meet the logisticsneeds of our customers,” said Jukka Pyykkö, Director, Itella Logistics.
Itella Logistics is Rautakesko’s international logistics partner operating in Finland,Sweden, Norway, Estonia, Latvia and Russia. The partnership covers the warehousing, terminalfunctions and transport of hardware and agricultural products. Itella Logistics has providedRautakesko with warehousing services in Finland since 2002. In December 2010, the partnership wasexpanded through a transport agreement covering Finnish warehouse deliveries.
