Itella Logistics provides warehousing services to Finnish retailer Rautakesko

Itella Logistics will provide warehousing services in Finland for Rautakesko, a major retailerof hardware, interior decoration and agricultural products, through its new 77,000 sqm logistics

With 45,000 sqm reserved for Rautakesko’s Finnish logistics services and two sections alreadyfinished, the rest of the new sections at Itella Pennala logistics centre will be completed by Junethis year with more than 100,000 sqm of warehousing space available for customers. The facility,with overall investment of more than €60 million, comprises 80,000 pallet spots, 8 km of shelvesfor small items and 62 loading docks.

Rautakesko’s retail chains include K-rauta, Rautia, Byggmakker, Senukai, OMA and K-maatalous.Apart from Finland, the company has operations in the Nordic and Baltic countries such as Sweden,Norway, Estonia, Latvia, Lithuania, Russia and Belarus. With a turnover of €2,716 million,Rautakesko has more than 450 retail stores in six chains.

“We have cooperated closely with Kesko in designing Pennala. The outcome is an ecologicalsolution at the focal point of Finland’s logistical goods flows. In addition to warehousingservices, we provide our customers in Pennala with added-value services such as product assembly,labeling and repackaging. In the spring, the B section will be completed. In this section there isspace for the safe warehousing and handling of hazardous products,” Jukka Pyykkö, Director ofItella Logistics, said.

“Pennala is a prime example of what can be accomplished through a well-functioning partnershipand shared goals. Teamwork is the way to best practices and smooth solutions. We have high goalsfor Pennala because we are going to improve the efficiency of space management and logistics in thefuture, too. We are happy that Pennala was completed on schedule and we are confident that futureoperations and solutions will also support our goals,” Olli Salmivaara, Logistics Director ofRautakesko, said.

Rautakesko highlighted the importance of centralising warehousing functions into a singlelocation for effective warehousing and better competitiveness. The contract covers Rautakesko’sgoods transport from the warehouses to K-rauta, Rautia, K-maatalous and K-asiakas contract stores. “ Pennala’s excellent location in our delivery network also decreases the carbon footprint ofdeliveries,” Salmivaara added.