Groundbreaking: Construction starts on Leipzig logistics center

• Investment of more than €200 million is a clear commitment to business in Germany
• Center due to open in 2027 and will create around 450 new jobs
• Designed for climate-neutral operation, it follows through on Beiersdorf’s sustainability agenda

Leipzig, July 11, 2024 – Beiersdorf AG today held a groundbreaking ceremony as construction began on its new, state-of-the-art logistics center in the north of Leipzig. The skin care group is investing a total of more than €200 million on the project. With construction due to finish in 2027, the center is set to create some 450 new jobs when it opens that year.

Michael Frey, Chief Supply Chain Officer and member of the Executive Committee of Beiersdorf AG, said at the festive ceremony: “Here in the heart of Europe, we are investing over 200 million euros in our largest and most modern logistics center in the world, in the direct vicinity of our new plant. With these two major projects, we are making a clear commitment to Germany as a place to do business. Together, they are the largest investment Beiersdorf has ever made at a single location.” Christian Haensch, Beiersdorf’s General Manager for Germany and Switzerland, added: “The new logistics center will act as a central European hub. Leipzig is ideally located for our supply chain network and for serving our customers in Central Europe. This will put us in a perfect position to quickly supply our retail partners and pharmacy wholesalers with innovations.”

Saxony’s State Secretary for Economic Affairs Thomas Kralinski at the ceremony: “The Free State convinces investors with sufficiently large areas, qualified specialists and an excellent technical infrastructure. This is demonstrated by current major investments such as Beiersdorf’s here in Leipzig-Seehausen. The Saxon state government appreciates the fact that Beiersdorf is realizing two major projects so close together and in such quick succession. We would like to thank Beiersdorf for the trust it has placed in Saxony, especially for the trust it has placed in our skilled workers.”

“Beiersdorf is writing another chapter in its success story at the Leipzig site and giving the starting signal for a modern and climate-neutral logistics center with several hundred new jobs,” said the Mayor of Leipzig, Burkhard Jung. He added: “This will strengthen our economic power in the long term. We are delighted about Beiersdorf’s renewed commitment to the Leipzig site and support its further development.”

The 12.5-hectare site will be home to a state-of-the-art hub for the central European supply chain network of the Hamburg-based, DAX-listed company. The location was chosen primarily for its good connections to the European transport network and its proximity to the company’s production sites. In future, a significant proportion of goods will be transported by rail. The high-bay warehouse with a height of 25 meters and around 125,000 fully automated pallet spaces will be Beiersdorf’s largest and most efficient warehouse anywhere in the world. The focus will be on the integration of VAS (value-added services) activities, for example the production of displays and the preparation of gift packaging and special assortment boxes for retailers. This will give Beiersdorf greater flexibility and efficiency in the supply chain, which will also promote sustainability.

Beiersdorf has set itself one of the most ambitious sustainability targets in the industry: Compared with 2018 levels, greenhouse gas emissions are to be reduced by 30% by 2025 and 50% by 2032. The company is working intensively on product transformation as an important aspect of reducing emissions. In the long term, Beiersdorf intends to use these measures to achieve its ambitious net-zero target by 2045, which was endorsed by the Science Based Targets initiative (SBTi) in February 2024. The new logistics center will contribute to the CARE BEYOND SKIN sustainability agenda and is designed to be climate-neutral. Its features will include photovoltaic modules and green roofs and facades. Beiersdorf also aims to receive LEED certification, an internationally recognized sustainability seal for building design.