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Sun 1 Jun 2014 02:56 PM

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UAE's Spinneys starts construction of Abu Dhabi distribution hub

Supermarket chain says cold storage facility in Khalifa Industrial Zone Abu Dhabi is set to start operations in Q1 2015

UAE's Spinneys starts construction of Abu Dhabi distribution hub

Spinneys, the UAE-based supermarket chain, said on Sunday it has broken ground on its new cold storage and distribution centre in the Khalifa Industrial Zone Abu Dhabi (Kizad).

The centre, which is planned to be operational by Q1 2015, is being built on a 382,905 sq ft plot of land in Kizad's logistics cluster.

Spinneys said it will operate the dedicated cold storage and distribution centre to manage food and non-food products and fast moving consumer goods (FMCG) destined for both UAE stores and international markets.

"After having successfully completed phase one of the Kizad Logistics Park a few weeks ago, today's ground-breaking ceremony of Spinneys marks a further move of our vastly developing logistics cluster," said Khaled Salmeen, CEO, Kizad.

"I am very confident that Spinneys - as one of the leading supermarket chains in the region - will perfectly integrate into Kizad and take advantage of our economies of proximity and comprehensive multimodal transportation network."

Jannie Holtzhausen, CEO, Spinneys Dubai, added: "Being located in Kizad will give us the opportunity to further grow our business by enabling us to get our products from international markets faster and more efficiently.

"It is this mixture of low operating costs, an ease-of-doing-business climate and excellent market access through the adjacent Khalifa Port that makes Kizad a highly attractive destination from which we will be able to tackle both urban and rural markets very effectively."

The facility will feature latest technologies and operate in line with international best practices, a statement said.

About 70 percent of the new facilities will be kept below 10 degrees Celsius, while the other 30 percent will be kept below 4 degrees Celsius, it added.

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