Bera launches tender for largest investment to date

Bera hf., the parent company of Ölgerðin and several other businesses, has launched a tender for the design and construction of a new warehouse and distribution centre at Hólmsheiði in Reykjavík, mbl.is reports.

The closed turnkey tender covers the final design of the building and its grounds, earthworks, concrete construction and finishing. The centre will handle most products made or distributed by companies within the Bera group, while beverage production will remain at the group’s current headquarters at Grjótháls.

“The company’s warehouse at Grjótháls is already too small, and we have had to use other warehouses, with the resulting inefficiency,” Bera chief executive Jón Þorsteinn Oddleifsson said. Moving the products to one warehouse at Hólmsheiði will improve efficiency and free space at Grjótháls for additional production equipment, he said.

Under current plans, the warehouse will cover about 23,000 square metres and have capacity for approximately 29,000 pallets. Automation and technology will be used to improve the flow of goods and operational efficiency. The site will also allow for a future expansion, as the plot will not initially be fully utilised.

Although interest rates are currently high, Bera’s management believes the time is right to proceed. The project will be financed through borrowing, the sale of properties made available by the relocation and the company’s operating funds during construction. Operations at Hólmsheiði are expected to begin in about three years.

Jón Þorsteinn said the project would be the largest investment Bera had undertaken. He said the company’s financial strength enabled it to pursue the investment with a long-term view.