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Inditex to invest 290mn euros in logistics & HQ expansion
Jul '12
Inditex held its Annual General Meeting of Shareholders at the company’s headquarters in Arteixo (La Coruña). The Meeting was chaired by Mr. Pablo Isla, Inditex’s chairman and CEO, who provided the company’s shareholders with an overview of the Group’s performance in 2011 and its outlook for this year. In his speech, Mr. Isla stressed the global growth opportunities facing Inditex’s commercial formats as a whole, having as a direct consequence an increase in the Group’s activity and investments in Spain.

Thus, the chairman of Inditex alluded to the currently under construction expansion of Inditex’s headquarters in Arteixo, which will lead to the creation of 400 new jobs. The 70,000 square metre addition to the head office will be used by the sales and design teams of Zara and Zara Home, entailing an investment of 100 million euros.

Mr. Pablo Isla also referred to the construction of Massimo Dutti’s new logistics centre in Tordera. This platform, which will be equipped with state of the art logistics equipment, entailing an investment of 190 million euros, will allow the creation of 500 new jobs. The new distribution centre will be operating next September.

As an example of the impact of the Group’s international growth in business activity in Spain, Mr. Pablo Isla recalled that Inditex has some 5,500 suppliers in the country, for which it generates annual turnover of approximately 2 billion euros.

Another important element of the chairman’s speech at the General Meeting focused on Inditex’s sustainability policies. On this domain, Isla highlighted Inditex’s commitment to its customers by offering products that come with health and safety warranties based on the application of the Group’s in-house Clear to Wear and Safe to Wear standards, which meet the most stringent requirements in place in this area worldwide.

Inditex has also made significant progress on its range of environmentally-friendly products through the Group's choice to organic cotton and biodegradable fabrics and its membership of initiatives such as the Better Cotton Initiative, CEO Water Mandate and the Textile Exchange.

On the logistics front, the Group’s target is to reduce greenhouse gass emissions from logistics operations by 20% by 2020 through the introduction of widespread energy-efficiency measures. In this regard, it is worth pointing out that the new logistics platform in Tordera apply environmentally-friendly measures right from the drawing board stage, paving its way for LEED Gold certification.

At the store level, Mr. Isla alluded to the progress made on the eco-efficient store model which is reducing energy consumption by 30%. The spreading of the eco-efficient store policy to the Group’s entire store network allowed that several stores from the Group’s different commercial formats were awarded with the most prestigious environmental certifications in 2011 and 2012.

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