9th September, 2016

New Cotton On Group DC for Avalon

From L - R: The Hon. Wade Noonan MP: Minister for Industry and Employment, Minister for Resources, The Hon. Lisa Neville MP: Minister for Water, Minister for Police, David Fox: Managing Director of Linfox, Michael Hardwick: CFO - Cotton On Group, Sarah Henderson MP: Member for Corangamite, The Hon. Daniel Andrews MP: Premier of Victoria, Peter Johnson: CEO - Cotton On Group

Together with Avalon Airport and the Victoria State Government, we are very proud to announce a joint $40 million investment into the construction of a new world-class distribution centre at Avalon Airport, Geelong.

The deal will see us become the anchor tenant in the new 40-hectare industrial precinct, further enhancing the speed in which we can deliver products to customers while also supporting our growing e-commerce channel.

The new centre reinforces the our commitment to our Geelong operations and people-first approach to business by investing in building workplaces of the future. The centre will be purpose-built to serve as a hub for stock distribution to our network of seven brands in over 778 stores within Australia.

Michael Hardwick, Cotton On Group Chief Financial Officer, said: “We are incredibly proud of our Geelong heritage and the contribution we have been able to make to the Geelong community over the last 25 years.  We are thrilled to be part of the development of the new industrial precinct at Avalon Airport.”

The size of the centre and technologies utilised will increase efficiencies, allowing stores around Australia to receive their daily stock replenishment orders faster and earlier than ever before in order to meet growing demand from customers.

With one of the fastest supply chains in the world, the existing Victorian distribution centre at Lara processes 130,000 products per day, while the new 35,000 square metre facility will be able to process 300,000 products per day.

Despite its ability to keep pace with current demand, the existing facility is not equipped to cope with growth predictions. The new facility has the capacity to grow in a dynamic and adaptable way though automation and expansion, to support the Group’s planned growth.

Justin Giddings, Avalon Airport CEO, welcomed today’s announcement at Cotton On Group head office at North Geelong.

“We’re thrilled to confirm the Cotton On Group will be joining the Industrial Precinct as our anchor tenant. The 40 hectare Industrial Precinct will provide great opportunities for further developments and will create more jobs for the Greater Geelong region,” Mr Giddings said.

Avalon’s 40-hectare industrial precinct development on the north-east corner of the site provides great access for employees from Geelong and Melbourne. It is estimated by 2026, the project will have created 750 direct jobs on site and up to 1100 indirect jobs. A key part of the infrastructure project will be the delivery of high voltage electricity, gas, water, fibre optics and communications infrastructure.

Victorian Premier Daniel Andrews also visited the North Geelong site for the historice announcement.

“With this fantastic investment from Avalon Airport and the Cotton On Group, Avalon’s new industrial and commercial jobs hub will really take off,” Mr Andrews said.

The project is expected to be completed by mid-2018.

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