Home / Business and Politics / Construction of a new logistics and distribution center of Podravka worth 48 million euros begins

Construction of a new logistics and distribution center of Podravka worth 48 million euros begins

The construction of a new Podravka logistics and distribution center (LDC) has begun in the Danica business zone in Koprivnica. This is the largest investment within the Podravka Group’s business strategy until 2025. The total value of the project is 48 million euros, and the works will cover 26,000 square meters of gross floor area, Podravka announced.

– The logistics and distribution center is being built on an area the size of three football fields. This is the largest planned investment within the investment cycle of the Podravka Group, which started back in mid-2021. By realizing this investment, we will elevate the level of service to customers to an even higher level, and significantly ease the work for employees in logistics and warehousing.

It is extremely important that we will significantly reduce the need for internal transport, thus contributing to the reduction of CO2 emissions. The storage locations in Koprivnica and the surrounding area will now be consolidated into one – emphasized Martina Dalić, President of the Management Board of Podravka.

With the start of construction works on the LDC, the realization of the project for optimizing logistics processes, which was initiated in mid-2021 after detailed analyses in the supply chain and the identification of measures for improving these processes, continues. The completion of the works is expected by the end of 2024.

Peaceful for at least ten years

– The construction project will include a fully automated high-bay warehouse, dispatch area, administrative building, and roads with all necessary infrastructure. The total capacity of the LDC will be nearly 62,000 pallet spaces in various temperature regimes, and in the near future, a connection with the main export warehouse, which is only a few meters away, is planned – said Tomislav Đuranek, Podravka’s project manager.

The selected location of the LDC is in close proximity to Podravka’s factories and allows connectivity with the existing export warehouse. The realization of this project will consolidate a larger number of current storage spaces used for storing finished products, raw materials, and packaging, which are located at eight different locations, the statement said.

The logistics and distribution center will meet the expected needs for storage space in the Croatian market over the next ten years. Also, if there is a need, it can be expanded in the future, and the installation of solar panels on the roofs is also planned, they add.

Despite pressures on operating costs due to the exceptional rise in raw material prices, the investment cycle of the Podravka Group is progressing as planned. After the IT and energy reconstruction and modernization of Podravka’s headquarters, investment in improving working conditions in factories and implementing new production lines in the Kalnik Factory and Pastry Cocktails, launching the Solar Power Plant, starting works on the expansion of the Soups and Vegeta Factory, Podravka continues its strong investment cycle with yet another major capital investment in accordance with the adopted Business Strategy until 2025, the statement concludes.

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