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Mekonomen: Mekonomen Group has signed a Letter Of Intent (LOI) with the intention of investing in an automated central warehouse solution in Strängnäs

As a part of streamlining the logistics structure Mekonomen Group
intends to centralise the structure of the central warehouses in
Sweden. The centralisation would in the long run imply a merger of
MECA's and Mekonomen's central warehouses with the intention to
enable a common, flexible and cost-efficient supply chain platform in
Mekonomen Group.

The plan is that the existing building in Strängnäs will be expanded
to include a common automated central warehouse. The estimated size
of the investment is SEK 250 million during the period 2016-2018 with
full EBIT effect from savings of SEK 50 million annually from 2020.
The tied up capital is expected to decrease with SEK 80 million with
full effect from 2020. Before a final contract is signed the involved
companies in Mekonomen Group will undertake the necessary
negotiations with relevant unions.

"Through this investment, we would get the industry's most efficient
business flows with a, for our business, optimal infrastructure,"
says Magnus Johansson, President and CEO of Mekonomen Group.

For further information, please contact:

Magnus Johansson, President and CEO Mekonomen Group Tel: +46 (0)8 464
00 00

Örjan Grandin, Supply Chain Director Mekonomen Group Tel: +46 (0)8 464
00 00

Per Hedblom, CFO Mekonomen Group Tel: +46 (0)8 464 00 00


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