Finland Post modernises its sorting and distribution process with major investment
In the next few years, Finland Post (as of 1 June Itella Corporation) will invest around €150 million in its mail processing. The aim is to enhance and improve the processing and handling of mail and, thus, in the future ensure a reasonably priced nationwide mail delivery service for the public and businesses alike. This will entail the biggest investment made by Finland Post for decades.
In the first phase, letter-sorting equipment, which is reaching the end of its life, will be modernised. Finland Post has agreed to buy new letter-processing equipment and systems from the French company Solystic. The new letter-sorting equipment will be located in the capital area, Tampere, Kuopio and Oulu. Installation work will commence in 2008 and the entire new system will become operational during 2010.
In addition to new mail processing equipment and information technology, the investment includes various building projects. A new sorting centre will be built in Oulu, existing sorting centres in Tampere and Kuopio will be expanded and sorting centre premises in the capital area will undergo refurbishment.
This autumn, the decision on the next phase of the investment programme, relating to the modernisation of the parcel and magazine sorting systems, will be made.
New technology will replace the soon outdated, stand-alone mail processing systems with one integrated mail processing network. The new generation technology will enable both more efficient operations and the provision of new types of services.
Currently, automated letter processing is also carried out in Turku, Lappeenranta and Seinäjoki. The planned investment does not include these three sorting centres and their operation will continue as at present. Their role will be reviewed in the coming years based on market developments and changes in volumes.
- With these investments, we wish to ensure our future competitiveness and position as the most significant operator in this sector in Finland as more and more communications are made electronically and as competition intensifies. We therefore have strong faith in the future prospects of physical distribution as part of multi-channel solutions for reaching addressees, states Kari Kivikoski, Senior Vice President, Itella Mail Communication.
Presently, Finland Post delivers around 12 million items every working day to 2.4 million households and 240,000 businesses. At Finland Post Corporation, deliveries of letters, magazines and direct marketing are handled by its Itella Mail Communication business group.
For further information, please contact:
Kari Kivikoski, Director (Itella Mail Communications), tel. + 358 20 451 4647
Mika Heijari, Communications Manager (Corporate Communications), tel. + 358 20 451 3045