CPI Group Warehouse Consolidation Program

7th April, 2010

A major cost reduction focus of the CPI Group is the rationalisation of warehouses nationally.

As reported in CPI's statement to the Stock Exchange on 22 February 2010 this rationalisation, from multiple to single warehouses per region is planned to occur as current leases expire over the next two years and as suitable replacement premises are secured.

The first step of this rationalisation program was completed in March 2010 in South Australia where the number of facilities has been reduced from two main warehouses supported by third party outside storage to one main store. 

Overall, for the whole of Australia, the rental and operational savings from this program is expected to be up to $5 million per annum once complete.

The image above illustrates an indicative perspective for a yet to be determined site in Western Sydney.

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