The combined sum of investments in the logistics centre totals EUR 4.8 million and the construction works lasted ten months.
The new premises will offer double the amount of warehousing space, technologies were implemented to facilitate everyday functions of the staff and more mechanisation is to be used. The warehouse was acquired based on a long term lease and is part of the development strategy of Oribalt Group, the parent company of Oribalt Vilnius.
“Our goal is to strengthen our position in the Baltic States. We have been working in pharmaceutical logistics already for 16 years and current trends show continuing growth in Lithuania’s potential. Currently Lithuania equates to around 40% of the entire Baltic states’ pharmaceutical market and so, by moving into a new logistics centre, we should experience faster growth. We will be able to accept more cargo, expand our service region into the neighbouring countries and broaden the list of our services,” Pekka Ruokanen, CEO at Oribalt Group, says.
The new logistics centre will increase warehousing capacities to eight thousand pallets, it will feature the very narrow aisle warehousing system and will have a large car park. If necessary, the logistics centre will also be able to be adapted to house a double the number of pallets.
According to Oribalt Vilnius head Audrius Pivoras, the company’s expansion was an inevitable step. The Lithuania-based logistics centre warehouses pharmaceuticals and other medical purpose goods, it is also expanding into food supplement and health food product offerings. Oribalt Vilnius delivers the goods of the brands it represents to Lithuania, Latvia and Estonia and so the company understands directly the changes within the neighbouring countries’ markets.
“Demand has seen a stable rise within the Baltic states and so we are strengthening our position in various goods categories. The expansion of our premises will help reflect the increasing demands of the pharmaceutical market and ensure more effective work process organisation. We are looking to have modern warehouses that are adapted to our main operations and to remain flexible in changing market conditions,” Oribalt Vilnius head Audrius Pivoras says.
The new logistics centre will carry out wholesaling and manufacturing of pharmaceuticals. The State Medicines Control Agency and State Food and Veterinary Service are expected to issue the necessary licences in early autumn.
Medicines, medical materials and other healthcare industry items, as well as equipment are warehoused in Lithuania to be distributed across the three Baltic states’ markets, while in some cases the Latvian and Estonian markets are served through the sister companies of Oribalt Vilnius.
The new warehousing and office premises were built for Oribalt by the Norwegian capital real estate investment company Baltic Sea Properties. Oribalt chose a long term purpose-build contract, whereby the premises are built for the pharmaceutical logistics company and leased to it with further expansion options.
