Swedish construction and civil engineering firm Peab has secured a contract worth $24.88m (SEK215m) from real estate firm M62 Holding to expand Varner’s distribution centre at Trestad in Vänersborg, Sweden.

The expansion will include 19,000m2 logistics centre comprising handling, storage and personnel space.

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The new building will be environmentally certified according to Breeam, incorporating sustainable features such as solar panels on the roof.

Varner supply chain director Anders Eriksson said: “The purpose of the extension is to increase our capacity to handle growing online shopping and provide better service to our stores.

“We have worked together with Peab before in Vänersborg and are very happy to have such a large, efficient and flexible partner with local roots in the Trestad area.”

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Construction work on the project is scheduled to commence this fall, with plans to begin operations in November 2022.

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The project is a turnkey contract and will be order registered in the third quarter of this year.

Peab assistant region manager Magnus Wedholm said: “We see good demand for efficient warehouse and logistics facilities in attractive locations and are therefore happy to be able to develop this logistics project.

“Peab will man the project from our two offices in Trollhättan and Uddevalla so local presence will be a major strength in this project.”

Recently, the company was awarded a NOK301m contract by Statens vegvesen to rebuild four ferry berths for electric ferries in northern Nordland, Norway.

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Rendering of Varner’s distribution centre at Trestad in Vänersborg, Sweden. Credit: Peab.