Spanish retailer Eroski is to invest EUR40m (US$50.9m) in the modernisation of its dry foods distribution centre in the Basque Country.
The investment will see Eroski add “modern” automated technology to the facility in Ellorio, which will allow the company to easier select and pack orders.
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The changes are expected to be completed by 2014, the company said, and will automate 50% of the firm’s case distribution.
Eroski is also building additional storage capacity that will increase productivity to enable the distribution of 5,000 pallets per day. The upgrade will include the construction of a building to group and manage wooden pallets and around 4,000 tons of plastic packaging and cardboard. The facilities will be operational by February 2013, after which, work will begin on the automated technology.
Agustin Markaide, Eroski’s president, said the automated platform will be used for products of “greater weight and rotation” and is “a milestone because it brings innovation to the sector”.
Eroski has a network of around 500 franchised supermarkets, including 212 stores in Galicia and 76 in the Basque Country.
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