The Friday Report Blog: April 28th, 2023

Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry

Volkswagen and Canada Create Finance Plan for EV Battery Plant

Vehicle manufacturer Volkswagen and Canada recently outlined a $14.8 billion finance plan to build an electric vehicle battery giga-factory in St. Thomas, Ontario. Construction on the plant is set to begin in 2024, with production projected to commence by 2027. The plant will create over 3,000 jobs.

Volkswagen will contribute over $5 billion to construct the plant while the Canadian government will provide the car maker with a $9.7 billion tax credit. In addition, Ontario’s provincial government will invest $371 million. This is the largest single investment in Canada’s electric-vehicle supply chain industry to date.

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IKEA to Invest $2.2 Billion to Power U.S. Growth

IKEA has announced plans to invest $2.2 billion over the next three years to fuel its omnichannel growth strategy in the United States. The investment will be used to open new stores and strengthen the home furnishings retailer’s fulfillment network.

The multi-billion investment will enable IKEA to open eight new stores, nine plan and order points, and 900 order pickup locations. IKEA will also expand its handling capacity by modernizing existing stores to support in-store and online shopping. In addition, the company will increase the use of solar and geothermal technology in warehousing locations as well as improve the speed of its last-mile fulfillment operations.

Over the past 12 months, IKEA has opened 15 pickup locations and two plan and order points. Earlier this year, IKEA launched its As-Is online shopping service. This service lets IKEA shoppers reserve gently used products to pick up in stores.

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Geodis Opens Two Cross-Border Delivery Gateways

Geodis recently opened two new airport gateway facilities to increase capacity for its cross-border delivery service, MyParcel. The facilities, located at John F. Kennedy International Airport in New York, and Los Angeles International Airport will add to the processing and handling capabilities of its current Chicago-based delivery segment.

The Geodis gateways will enable the company to lease 42 flights a week into Amsterdam or London. MyParcel currently provides delivery from the U.S. to 26 European continental countries, the United Kingdom, and Canada. The added gateway expansions will also boost its movement into new markets such as Mexico, Australia, and New Zealand.

In December, Geodis added a zone-skipping service from the U.S. to Canada to speed MyParcel’s transit times. The service bypasses touchpoints by combining individual shipments via air transport.

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