EMAG-Extreme Digital to build 117,000 sqm automated logistics center

Logistics

EMAG-Extreme Digital will soon serve its customers from a new logistics center with a floor area of nearly 117,000 sqm, which will also feature several automated solutions, according to a press release sent to the Budapest Business Journal.

The modern warehouse, being built in Dunaharaszti with an investment of around HUF 35 billion, is scheduled to start operations by the Christmas season. The investment is financially supported by the Hungarian Investment Promotion Agency (HIPA). From the new logistics center, products will be shipped not only to Hungary but also to six other markets (Croatia, Slovenia, Slovakia, Austria, Germany, and the Czech Republic).

In addition to strengthening the role of the company and its thousands of Hungarian retail partners in the Hungarian e-commerce market, the investment will also create jobs in the region: eMAG-Extreme Digital will provide employment for around 350 people in the first year, but the company expects the number of logistics staff working here to grow to 600 within four years.

"The Hungarian Investment Promotion Agency will provide HUF 4.8 billion in non-refundable support to eMAG-Extreme Digital for the establishment of the warehouse base in Dunaharaszti, as it is a major advantage for Hungary that this logistics center serving six countries can be established in Hungary. This is another indication that the logistics sector has now become a flagship of the Hungarian economy", said Péter Szijjártó, Minister of Foreign Affairs and Trade.

In addition to the construction of its own logistics center, eMAG-Extreme Digital is investing more than HUF 5 bln in the purchase of logistics equipment offering a high degree of automation, which will further speed up the processing of orders.

According to the press release, the development is justified by the rapidly growing range of eMAG-Extreme Digital products, as eMAG.hu webshop now offers almost 4 million different products, from dishwasher tablets to electric scooters.

E-commerce in Hungary has continued its rapid growth in the last two years: in 2021, the sector was driven by a turnover of HUF 1.203 trillion generated by nearly 70 million domestic orders, bringing stable growth of over 30%, according to research by GKI Digital and Árukereső.hu.

"The e-commerce sector in Hungary has developed significantly in recent years: the expectations of Hungarian customers are also getting higher, they don't want to wait for days for a product to arrive, they want faster and more convenient pickup. Since the beginning of May, we have been offering our entire portfolio of services and products on the eMAG.hu platform, which has allowed us to focus more on technical and logistical improvements," eMAG-Extreme Digital CEO Balázs Várkonyi said.

"We are building a larger warehouse base than ever before to provide our customers with a more efficient, faster, and higher quality service. The new warehouse base will not only speed up the processing of eMAG-Extreme Digital's orders, but also those received by more than 6,000 businesses in Hungary and the region that offer their products and services to Hungarian customers on the eMAG Marketplace. Our investment will also help Hungarian small businesses to become professional online merchants and remain competitive against foreign online giants expanding in our region," he added.

As part of the company's commitment to sustainability, 150 trees will be planted near the new warehouse base in Dunaharast, the first of which was planted jointly by Péter Szijjártó, Minister of Foreign Affairs and Trade, and Balázs Várkonyi, CEO of eMAG-Extreme Digital.

The new high-tech warehouse in Dunaharaszti will be the Romania-based eMAG Group’s first self-financed logistics center to be established in a foreign country.  The construction of the facility has already started and the general contractor for the project is Baupartner Construct, which has built several similar warehouses for the group in Romania. The construction of the Dunaharaszti warehouse is part of the eMAG Group's long-term strategy to invest the equivalent of HUF 255 bln in regional expansion, technology, and infrastructure.

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