DX Group investing £3m in electric vans for IKEA contract

28th Jun 2023 14:09

(Sharecast News) - DX Group announced a significant investment of £3m in new electric vehicles exclusively for its delivery and logistics partnership with furniture retailing giant IKEA on Wednesday.

The AIM-traded firm said the funds would be used to add 53 electric vans to the fleet, marking the group's second major round of investment in electric vehicles for the IKEA contract.

It previously introduced an initial fleet of electric vans for IKEA in August last year, with an investment of £0.75m.

The addition of the new vans represented a substantial expansion to the group's dedicated electric fleet for IKEA.

DX said the vehicles would be stationed at six depots at Heathrow, Milton Keynes, Reading, Sheffield, Southampton, and Willenhall.

The £3m investment in electric vehicles for the IKEA partnership is part of DX's broader capital investment programme, totalling £20m to £25m over three years.

"We share IKEA's goal to move to more environmentally-friendly business practices, including the use of electric vehicles for deliveries, and are delighted that, with this investment, we will further reduce carbon emissions while maintaining the highest possible service standards," said Ian Bolton, managing director of DX Logistics.

At 1134 BST, shares in DX Group were up 3.83% at 30.89p.

Reporting by Josh White for Sharecast.com.