Sweden's Axfood to invest up to 280 million euros in new automated warehouse
Swedish food retailer Axfood AB said Thursday it plans to build a new highly automated logistics center in southern Sweden, an investment estimated at between 260 million and 280 million euros.
The facility, planned for Kungsbacka and slated to begin operations in 2030, is part of a broader strategy to modernize the company's supply chain.
The move follows the successful launch of a similar automated warehouse near Stockholm, which the company recently said has improved its efficiency and competitiveness.
Axfood has signed a letter of intent with German automation specialist Witron, the same partner it used for the previous project.
"We are building for the future," President and CEO Simone Margulies said in a statement.
"With the new logistics solution, we will become even more competitive and create synergies within the Group."
The company said the new facility will handle deliveries to its stores in the region and is expected to increase logistics capacity there by at least 20 percent.
The investment will be financed through operating cash flow and credit facilities over the period from 2025 to 2030, according to the company.
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