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IR Blog: Onnela logistics centre is the biggest construction project in Kesko's history and a key investment in future growth
Kesko is currently constructing a large, modern logistics centre in Hyvinkää, some 50 kilometres north of Helsinki. Once completed, the centre – called Onnela – will host both Onninen's technical trade and K-Auto's spare parts business. Kesko is investing some 300 million euros in the project. As special attention has been paid to environmental aspects in the design and construction of the centre, green financing obtained by Kesko can be used to cover the investment.
Kesko's new Onnela logistics centre will be operational in the autumn of 2025. The entire 85,000-square metre construction project will be completed in phases by 2030. (Images by Haahtela)
The new Onnela logistics centre is an investment that brings together Kesko's divisions, and enables the company to prepare for future growth. It will serve Kesko’s technical trade company Onninen, which is expected to continue its strong growth going forward. The new centre’s high level of automation and centralised storage enable more efficient packaging and labelling of orders as well as faster deliveries, thus helping Onninen's customers and construction sites to operate more efficiently. The centre will also house K-Auto's growing spare parts business, improving its logistics efficiency and reliability of product deliveries. In total, the centre will host 400-500 Kesko professionals working in logistics.
Onnela is the biggest construction project in Kesko's history, and the biggest ongoing construction project in all of Finland measured in cubic metres. Once completed, the centre will total 85,000 square meters (approx. 915,000 square feet) in size. The centre will be operational by the end of 2025, and the entire construction project will be completed in phases by year 2030.
Careful consideration of environmental aspects lends the project eligible for green financing
Kesko announced earlier this week that it would be issuing senior unsecured green notes totalling 300 million euros, with net proceeds used to finance or refinance eligible green projects or assets in accordance with the Green Finance Framework established by Kesko in May.
Environmental and nature values have been at the forefront for the Onnela project from the start, extending from design to construction. Kesko will be applying for a “Very Good” BREEAM certification for the building.
In project design, special attention has been paid to reducing energy consumption and carbon footprint, thus reducing costs and emissions over the property’s long life cycle. Low-carbon concrete has been used in on-site concrete casting, and special attention has been paid to the insulation and sealing of the building's walls and roofs. Additionally, the building's heating, cooling, and lighting systems utilise as much energy-saving automation as possible.
The most advanced solutions on the market are also used when it comes to energy production. The primary heating method for the new centre is geothermal energy: about a hundred geothermal wells will be drilled on the site. Geothermal energy will cover the centre’s heating needs almost entirely, with district heating needed only on the coldest winter days and to support the production of hot water. The total power offered by the heat pump system is 1.2 MW.
All electricity used in the logistics centre will be renewable, and the site will host its own solar power plant. The estimated annual production of the plant is 630 MWh. As Onninen offers the widest range of solar power systems in Finland, all the solar panels and other related equipment – as well as the equipment required for the geothermal system – are supplied from Onninen's selections.
Onnela’s own solar power plant began operating in the summer of 2024, and on sunny days it was already able to produce all the electricity needed on the construction site during the workday.
The recycling of materials and reduction of waste have been central themes in the project construction. The project has also appointed an ecologist, who has inventoried the natural values of the site, and is now reviewing options for offsetting them at a location to be determined later.
More information on the environmental and sustainability aspects of the Onnela project can be found here.
