Volvo Group Australia Opens New 21,000-Square-Meter Distribution Center in Sydney

en.Wedoany.com Reported - Volvo Group Australia has officially inaugurated a new parts distribution center in Minto, southwestern Sydney, replacing an outdated facility built on the same site in 1975. The new center reflects the advancements in logistics technology over the past 50 years.

Spanning 21,000 square meters—twice the size of the previous facility—the new distribution center can accommodate 72,000 different stock-keeping units (SKUs), including components for traction batteries and battery electric vehicles (BEVs), to meet the evolving needs of fleets. The center is equipped with Volvo Group's first global automated storage and retrieval system, utilizing a computer-controlled system with ultra-high-density storage technology to maximize space utilization, automatically retrieve parts, and deliver them directly to operators' workstations. Custom cranes integrated into the shelving lift and extend into aisles to place parts on pallets without manual handling.

Martin Merrick, President and CEO of Volvo Group Australia, stated that this technology alone has improved parts availability, shortened delivery times, and increased first-fill rates. The system significantly reduces movement, bending, and manual handling, combined with ergonomic features such as height-adjustable workstations, anti-fatigue mats, and a comprehensive fleet of material handling equipment, prioritizing operator safety and comfort. "Improving the work environment for our team was a key driver of this project," Merrick said. "We prioritized ergonomics as a high priority, and this advanced equipment has had a tremendous impact on our employees' working conditions."

In line with Volvo's commitment to sustainability, the center was built from the ground up as a 5-Star Green Star facility. Merrick noted: "The center is designed as a 5-Star Green Star facility, supporting Volvo Group's sustainability goals and high standards for energy efficiency and indoor environmental quality."

The new Sydney distribution center is part of Volvo Group's broader investment of nearly AUD 400 million in Australia over the past 18 months, including strategic investments in distribution, retail, and capabilities. Merrick said: "The center will enhance support for customers in freight, public transport, marine, and industrial sectors, helping to improve parts availability and customer uptime in Australia and New Zealand."

Roger Alm, President of Volvo Trucks, cut the ribbon at the opening. Alm stated: "The Sydney distribution center is the first of its kind in Volvo Group's global operations and a significant step in strengthening our customer support in Australia. It brings together safety, quality, and efficiency to improve parts availability, enable faster service, and increase uptime—keeping trucks on the road. With the new center, we are building a stronger logistics network, ready to support today's vehicles and next-generation transport solutions. I am very pleased to see this investment come to life and thank the Australian team for making it happen."