Synnex and Bunnings unveil expansion plans

IT distributer Synnex Australia and hardware firm Bunnings unveil expansion plans

By Rob McKay | September 28, 2010

NSW is set to see an acceleration of distribution centre and retail outlet action, with IT distributer Synnex Australia and hardware firm Bunnings unveiling expansion plans.

Synnex’s 21,110sqm Lidcombe property was bought from Australia Cooperative Foods for $12 million and $20 million more will be spent there on an automated distribution centre.

"To support our growth in NSW and Queensland, it’s important that we continue to invest in our infrastructure, our logistics capability, our business processes and our people," Chief Executive Kee Ong says.

"The new logistics centre in Sydney will be the first of its kind in Australia and will enable us to service our customers better and respond more quickly to their needs."

The move comes a year after Synnex spent $500,000 on 12 trucks to bring its national fleet to 40, while expanding its Melbourne headquarters to house 100 additional staff.

Meanwhile, with the Woolworths and Lowe hardware joint venture, Danks, on the scene, Wesfarmers-owned Bunnings will add to its NSW portfolio with a three-year, $600 million, 18-site expansion.

Bunnings has secured sites for 12 new Bunnings warehouses at Alexandria, Balgowlah, Batemans Bay, Castle Hill, West Gosford, Greenacre, Rouse Hill, Tamworth, Marsden Park, Wallsend, Smithfield and East Gardens.

Of those sites, development approvals are already in place for Alexandria, Castle Hill, Rouse Hill and Tamworth, with construction starting soon.

Three new Bunnings warehouses are currently under construction and will open in Seven Hills next month, Port Stephens in December and Chatswood in February 2011.

An existing business has been secured at Lithgow and plans are also underway to open two new trade centres at St Peters and Cromer.

Since July 2009, Bunnings has opened stores in Armidale, Wagga Wagga, Narellan, Morriset and Cowra, and trade centres in Tuggerah and Unanderra.

ATN was awaiting comment from Bunnings at deadline today.

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