Scandinavian retail chain ICA, part-owned by Dutch retail giant Ahold, has said it is to invest SEK585m (US$78.2m) in a new warehouse and open a new Maxi ICA Stormarknad outlet in Helsingborg.

ICA's new warehouse in the southern part of Sweden is to be situated in Långeberga in Helsingborg. The new warehouse is part of ICA's planned SEK1.5bn investment in a new distribution network in Sweden, aimed at meeting increased consumer demand for perishable groceries and frozen foods.

"The new facility in Långeberga will be ICA's most modern - a full-scale warehouse measuring 63,000 square meters," said Anders Torell, SVP of logistics for the Swedish unit of ICA.

Construction of the new warehouse is planned to begin in spring 2005, and it will become partially operational just over a year later. A new Maxi ICA Stormarknad will be built on the location of the present fruit and vegetable warehouse, and is likely to open in 2007.