Wittchen estimates expenses related to construction of new logistics center at PLN 60-70 million

by   CIJ News iDesk III
2023-09-15   15:51

Wittchen estimates that expenses related to the construction of a new logistics center will amount to PLN 60-70 million, company officials said. The purchase of a plot of land with an area of about 10 hectares could take place as early as this year, and construction is likely to start in 2024.

"As for our investment plans, we are planning to build a new logistics center, as our center is insufficient. There was an idea to expand our current center, but with our sales dynamics, this would not be sufficient, hence the idea for a completely new one. We would buy the land for the new development and, most likely, the construction of the center, which would have an area of 30,000 sqm, would start as early as next year. This would allow us to streamline logistics processes and reduce costs," Finance and development manager Grzegorz Ochędzan said during a video conference.

"We are at the stage of deciding on a site and purchasing a plot of land, and I hope this will happen this year. We want to buy about 10 hectares of land to build 30,000 square meters there in the first stage, and we estimate that these construction costs together with the plot will be about 60-70 million zlotys. How we will finance it, we will still think about it," Chairman Jedrzej Wittchen added.

Ochędzan stressed that the company is not indebted, and that external financing will probably be needed. "We are considering various scenarios, but it also depends on our 'cash'," he said. The CEO, meanwhile, noted that the company has no plans to issue shares.

The CEO also said that with a plot of about 10 hectares and the construction of a 30,000-square-meter center in the first phase, the company could even double that warehouse space in the future.

"We would also like to provide logistics services, which would be an additional source of profit for us," he added.

Earlier, the company reported that it wants to build a second logistics center - in addition to the current one in Palmiry near Warsaw - with an area of about 30-50 thousand square meters, and is looking for a good site for the investment in the Warsaw area.

Source: Wittchen and ISBnews