STOCKHOLM--(BUSINESS WIRE)--Regulatory News:
ICA Gruppen has decided to expand and renovate its central warehouse and head office for Rimi Baltic. The investment will amount to an estimated EUR 75 million, equivalent to around SEK 700 million, and will be implemented between 2016 and 2018. The new warehouse will allow for an entirely new infrastructure for the whole Baltic market.
EUR 64 million of the total investment is for the warehouse renovation and EUR 11 for the offices. The property is in Riga and after the expansion it will be 94,500 m2in size, a net increase of 35,000 m2compared to the situation today, which comprises both owned and rented warehouse space. Under the investment plan around two thirds will be invested in 2016 and 2017, and the remainder in 2018.
When the central warehouse is expanded, warehousing operations in Latvia will be consolidated to the facility in Riga, and the central warehousing department for the Baltic countries will be expanded.
With the strong growth taking place in the Baltics, the current warehouse and offices in Latvia are no longer adequate. In addition to adding more space, the investment will enable the buildings to be modernised and adapted to today’s needs.
Rimi Baltic is a grocery retailer operating in Estonia, Latvia and Lithuania through the store concepts Rimi Hypermarket, Rimi Supermarket, Supernetto and Säästumarket. Sales in 2014 amounted to SEK 11,632 million and operating income excluding non-recurring items was SEK 383 million.
ICA Gruppen discloses the information provided herein pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 8.30 a.m. CET on Friday 4 December 2015.
ICA Gruppen AB (publ) is a leading retail company with a focus on food and health. The Group includes ICA Sweden and Rimi Baltic which mainly conduct grocery retail, ICA Real Estate which owns and manages properties, ICA Bank which offers financial services and Apotek Hjärtat which conducts pharmacy operations. The Group also includes the portfolio companies inkClub and Hemtex. For more information see icagruppen.se
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