Axfood has announced plans to establish a new, highly automated logistics center in southern Sweden to ensure increased capacity and efficiency for the group’s future growth.
Letters of intent were signed with WITRON to use the company’s automation technology and with the municipality of Kungsbacka to locate the logistics center in Frillesås. WITRON is the market leader in dynamic warehouse and order picking systems.
The center is expected to be completed in 2030. Investment requirements for the future automation solution are estimated at 260-280 million euros over the period 2025 to 2030.
“Building for the future”
“We are building for the future,” said Simone Margulies, president and CEO of Axfood. “With the new logistics solution, we will become even more competitive and create synergies within the group.”
He added: “We are investing to meet future needs for the delivery of goods to both the group’s own stores and those of our customers, in a flexible and efficient manner. »
The investment will be financed through a combination of operating cash flow and credit facilities.
Optimization
Axfood intends to enter into a long-term rental agreement for the logistics building, and discussions with potential owners are ongoing. The detailed development plan process has been launched.
In order to optimize logistics operations, the Kungsbacka logistics center will mainly manage store volumes for food retail and will mainly replace the existing warehouse in Backa.
At the same time, the new logistics center is being built to handle the volumes currently handled from the warehouses in Jönköping and Hässleholm. Fruits, vegetables and flowers will continue to be shipped from the Landskrona warehouse.
“Evolving”
Overall, Axfood’s capacity with the new logistics center is expected to increase by at least 20% compared to the current volume in southern Sweden.
“With our establishment in Frillesås, Kungsbacka, we will become more efficient in adapting to the evolution of future food retailing,” said Hans Bax, Managing Director of Dagab.
“With the establishment of our logistics center in Bålsta, we have experience with this type of installations and are confident in continuing this initiative together with our automation partner WITRON.”
This article was written in partnership with Axfood and WITRON.