European independent cold storage provider begins major capacity project

Groundwork has begun at the Easte Road 2 site in Grismby, with its current 17,000 europallet capacity expanding by 188%.

Construction of the facility has been supported by a £5m grant from the UK Seafood Infrastructure Scheme. The site will feature a solar array, with Constellation claiming the facility will be 30% more energy efficient than existing cold stories.

The temperature-controlled storage provider was established in 2020 by Arcus Infrastructure Partners, which brought together three businesses located in Belgium, Norway and the Netherlands.

Today, it owns and operates 26 large cold storage facilities across seven countries in Western Europe and the Nordics. The London headquartered firm employs 700 people and is expected to generate revenues over €150m in FY24.

Its Grimsby project is expected to complete next year and has been driven by demand in the region from both new and existing customers who, Constellations says, are committed to use the expansion’s pallet positions.

Commenting, Robbert Jan te Raa, VP for solutions and engineering said: “It is great to see the project rapidly progressing. The site’s construction has been carefully planned and will include new technology to enhance operational efficiency for the benefit of our customers.”​

This follows Constellation’s recent announcement of its acquisition by EQT, a purpose-driven global investment organisation registered in Stockholm, Sweden. The acquisition is expected to close in the October of this year.

The European cold storage market is witnessing strong growth (around 7% per year), driven by the rising consumer demand for foods with longer shelf life. This has been aided by producers moving to outsourcing, just-in-case supply chain strategies, and value-added services as the industry matures.

In other investment news, food packaging firm Eviosys has been acquired in a $3.9bn deal. ​​