We advised HKScan, a significant Nordic food company, on the construction of their new pan-Baltic logistics centre, located in Jüri, Estonia.
Important investment
From the middle of September, products of Rakvere, Tallegg, Rigas Miesnieks and Klaipedos Maistas will move to Baltic stores through the new HKScan Estonia logistics centre located in Jüri, Estonia. HKScan will centralise the operations of their assembly centres in Rakvere and Riga in the new logistics centre.
The new centre has 9,000 square meters of warehouse space, and it can be further expanded later. Solar panels installed on the roof of the logistics centre will reduce the energy consumption by about 30%. Additionally, a new automated washing system, offering a 25% growth in efficiency compared to previously used systems, will be installed.
Benefit for employees and the environment
The new logistics centre will help HKScan save on both warehousing and distribution costs and significantly reduce its environmental footprint. In the new logistics centre, a responsible approach and environmental aspects have been considered in many ways. Carbon dioxide emissions will significantly decrease as transport will be reduced by about 400,000 kilometres per year, which is about 10 times around the globe. HKScan have set a target of carbon neutrality throughout our food chain by the end of 2040. The investments in the production and new logistics centre in the Baltics will contribute to the target.
The modern centre will provide jobs for 105 people and serves HKScan’s business throughout the Baltic region. “By consolidating HKScan’s Baltic logistics next to Tallinn, we are preparing for the increasingly competitive demands of the changing and evolving retail and food service market in the Baltic countries, which primarily concerns the speed, quality and frequency of deliveries, delivery capability and reliability. We have upgraded the warehouse management system and introduced modern tools. Also, we have paid special attention to the occupational safety and well-being of our employees in the new logistic centre”, says Juha Ruohola, HKScan EVP for Business Unit Baltics.
Our services and client team
We advised HKScan throughout the project, from the initial plans to the adoption of the logistics centre, on all legal issues related to the development project. We advised on planning of the transaction structure, drafted the necessary agreements, including the development agreement, and participated in the negotiations and assisted in making the necessary registrations.
Our client team included partner Paul Künnap and senior associate Britta Retel.
