Foodstuffs to build $45 million distribution centre in Hornby

Foodstuffs South Island is planning to build a $45 million distribution centre at Hornby, the largest of its type in New Zealand.

Foodstuffs to build $45 million distribution centre in Hornby

John Mullins and Steve Anderson survey plans.

The new 25,000 sq. m. building will adjoin an existing 13,000sq. m. facility, situated in the emerging distribution hub bounded by Shands Road and Main South Road. This will be nearly double the company‟s existing centre in Papanui.

Steve Anderson, chief executive of Foodstuffs South Island, said that the company‟s present site in Papanui is too small to accommodate future growth, coupled with difficulties of access for heavy vehicles.

"This is a significant investment on our behalf, but that is the confidence we have in the South Island. We signaled back in 2005 that Papanui was too small and when we opened a new centre in Hornby in 2007 it was an obvious signal that this would be the site of future development. Hornby is now the distribution hub of the South Island due to its proximity to State Highways north and south, the new Southern Motorway Project, plus the Port of Lyttelton" he said.

Anderson said that while planning was in its very early stages, and with the size of the proposed centre, he was confident that staff would retain their jobs.

"We want to future proof our entire distribution system for the next 25 years and this will allow us to do so. Papanui was an older style centre with low racking height and much traffic congestion, something that would only deteriorate over time. This new facility gives us the chance to introduce much 'greener' energy and lighting systems, increase rack heights to 11 metres and have improved work conditions with covered dock areas and larger yard areas. Staff facilities will also be considerably enhanced with plans for a state-of-the art cafeteria, training room and amenities block" he said.

Work is expected to commence late 2011 as the company works through the planning and consent stages with completion a year later. Foodstuffs South Island head office will remain on the Papanui property but the distribution centre land will be subsequently sold.

Foodstuffs moved from Moorhouse Avenue to a brand new head office and distribution centre site in Papanui in 1971. This site has been expanded on three separate occasions, in 1989, 1993 and 1999 and presently covers 20,000 sq. m.

Foodstuffs remains committed to its very important Regional Distribution Centre (RDC) in Dunedin.

Further information: John Mullins, General Manager Wholesale Operations and Procurement for Foodstuffs, ph 021-838-378

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