Hermes Fulfilment begins construction of its first logistics hub in Poland

Hermes Fulfilment has begun construction of its first logistics center in Poland in the Iłowa municipality. The 150,000 sqm facility will be one of the largest hubs for the Hermes group in Europe, and will provide employment for approximately 1,900 people. The investor plans to open the facility before the end of 2023. The value of the investment will reach 300 million euros. Hermes Fulfilment is working in cooperation with Panattoni, the lead developer and project manager.

On Tuesday, April 26, a cornerstone laying ceremony was held for the Hermes Fulfilment logistics hub, located in the Iłowa municipality in the Żagań district. The emerging investment is the first in Poland for the Hermes group and the second largest for Hermes Fulfilment in Europe. Its developer is Panattoni.

The logistics center in Iłowa will be responsible for order fulfillment operations for OTTO Group e-commerce companies and value-added services (VAS). The orders handled will primarily consist of clothing, textiles, jewelry, toys, and small household appliances. The OTTO Group has been active in the retail sector for over 70 years and is currently present in over 30 countries. Its logistics arm is the Hermes group, including Hermes Fulfilment.

The cornerstone laying in Iłowa brought together a wide representation of local and regional government officials, provincial authorities, and contractors.

"We chose the Iłowa municipality because of its location advantages and the state of its infrastructure. However, such an investment can only be created with openness and in cooperation with local government authorities" – said Julia Hanebuth, Managing Director of Hermes Fulfilment.

On two levels with a total usable area of 150,000 sqm, jobs will be created for 1,900 people. Almost 60 percent of them will be women. Thanks to an optimized operating system, it will be possible to dispatch almost 80 million items annually. Panattoni plans to commission the facility at the turn of the third and fourth quarters of 2023.

"The first Hermes logistics center in Iłowa is one of the largest facilities of this type in Poland. We are focusing on combining technology with human skills. Thanks to a high degree of automation, work will be more flexible, comfortable, and safe than in similar facilities. As our research shows, these are significant advantages for employees in the logistics and warehousing industry" – added Julia Hanebuth.

The proximity to Germany and an open window for serving a significant area of Europe make large-format industrial facilities, order fulfillment centers, and logistics bases an inherent part of western Poland. After centers such as Zielona Góra, Grodzisk Wielkopolski, Świebodzin, Bolesławiec, or further north Szczecin and Stargard, Iłowa confirms the attractiveness of locations near the border. In a town located just 20 km from Germany, Panattoni will provide the new investor with its first logistics center in Poland.

"Germany, according to forecasts, will become the largest e-commerce market in Europe as early as 2025, generating 19 percent of European revenue in this segment. The powerful and constantly developing online sales industry is driving demand for large-scale fulfillment centers, for which the western part of Poland proves to be an ideal hub. The proximity to the border enables the service of most markets in this part of the continent, which accounts for the lion's share of online transactions and sector revenues" – says Dorota Jagodzińska-Sasson, Managing Director at Panattoni - "In the region of Poland's western border, we are stimulating the development of many markets, building, among others, in Szczecin, Zielona Góra, Gorzów, Świebodzin, Bolesławiec, Głogów, or in Żary. We have already delivered over a million sqm of space here, and market knowledge, client trust – such as the Otto Group and Hermes Fulfilment - and interest in the region are driving further investments."

The Hermes Fulfilment investment will undergo DGNB environmental certification at the Gold level. Its location ensures excellent connections to the main motorway from Poland to Germany, as well as good access to employees in the region. Iłowa is a municipality located in the southern part of the Lubusz Voivodeship, in the Żagań district. Its strong point is its location in the border area and convenient road communication with the European Union market.

"The Hermes investment coincides with the debate on the municipality's development strategy. We are pleased that our forecasts regarding the designated directions of development are consistent with the needs of international logistics business. This is recognition for the local government, but also a serious challenge. The next step for our Municipality will be the expansion of the necessary infrastructure and the creation of conditions for residential construction. I am convinced that thanks to new investors and efficient management, we will be able to achieve our common goals." – said Paweł Lichtański, Mayor of Iłowa.