KUALA LUMPUR: Fiamma Holdings Bhd is setting up a RM60 million integrated logistics warehouse in Bandar Bukit Raja, Klang, to enhance the group's operations and cost-efficiency through centralised warehousing and distribution.
Of the total, RM30 million would be used to acquire land and the balance for the construction and setting up of the warehouse, the leading consumer goods distributor said in a statement.
The new warehouse, when completed by end-2016, would double the group's total storage capacity to 43,000 cu m from 20,000 cu m at present, it added.
"It is a strategic investment to better support the increasing product range in line with our future expansion," said chief executive officer and group managing director Jimmy Lim.
The investment would be financed with internal funds and borrowings.
Located close to Port Klang, the warehouse is equipped with an automated storage and retrieval system (ASRS) technology to centralise the operations, achieve highest efficiency and optimise utilisation of the floor space.
"We believe that consolidating our current warehouse to a single location would not only improve our cost structure, but also grant us sufficient capacity to enlarge our revenue base in the future," Lim said.
He estimated that Fiamma would only require half of the space to accommodate the group's current storage requirement in the near term.
"This represents a good opportunity for us, where approximately 50% of space in the new warehouse would be leased to third-party customers for their storage and warehousing needs.
"This would therefore generate a recurring income stream for the group to complement our core distribution business," Lim added.
Fiamma currently distributes household electrical home appliances, sanitary ware and bathroom accessories under the Elba, Faber, Rubine, Tuscani and Haustern brands. - Bernama
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