Itella Logistics builds a new, hi-tech logistics center of 70,000 square meters in Pennala, Finland


Itella Logistics and Rautakesko continue their long-term cooperation

Itella Logistics is launching a logistics center expansion project of over 70,000 square meters in Pennala, Orimattila. Itella Logistics and Rautakesko have agreed on the centralization of Rautakesko's domestic warehousing in Pennala. The new logistics center will utilize energy-efficient warehousing and heating technology.

The new logistics center will be built next to Itella Logistics' existing service warehouse on Jokimäentie in Pennala. The property will have state-of-the-art warehousing and heating technology. Collection, for example, will use voice control, and property heating will be based on energy-efficient terrestrial heat. As a result of the expansion, Itella's storage space in Pennala will exceed 100,000 square meters. The construction of the new logistics center will begin in May 2011, and it will be completed in June 2013. 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 center 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", says Olli Salmivaara, Logistics Director of Rautakesko.

"Our log-term partnership with Rautakesko and the recovery of the economy makes it possible for us to continuentinue the Pennala expansion project. The total value of the investment is €61.5 million. This is a significant investment in the economic zone of Lahti, with excellent connections throughout Finland and good opportunities for obtaining workforce. Service centralization under the same roof enables more cost-effective operations for us. We can also better meet the logistics needs of our customers," says 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, 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.

More information for the media:
Jukka Pyykkö, Director, Itella Logistics, tel. +358 500 463 633
Olli Salmivaara, Logistics Director, Rautakesko, tel. +358 50 306 4130

The Itella MediaDesk is available for journalists at +358 20 452 3366 on weekdays from 8:30 a.m. - 4:30 p.m.
For Itella-related image material, please see the Media section of Itella's corporate website Image service and logos.

Itella Logistics supports and develops the business of its customer companies by providing them with service logistics solutions for road, sea and air freight, warehousing and other contract logistics. Customers may outsource an individual element of their logistics process, or even their entire delivery chain to us. Itella Logistics has over 30 offices in eight countries (Finland, Sweden, Denmark, Norway, Latvia, Lithuania, Estonia and Russia). The company provides global services through its partners. In 2010, the net sales of Itella Logistics (part of Itella Group) was €677 million and it employed 7,700 people.

Rautakesko ( sells hardware, interior decoration and agricultural products and its retail chains are K-rauta, Rautia, Byggmakker, Senukai, OMA and K-maatalous. Rautakesko manages the chains, combines their purchasing power, arranges effective logistics, acquires commercial locations and ensures strong marketing and development support for the stores. Rautakesko has operations in the Nordic and Baltic countries, Russia and Belarus.