Ikea has embarked on the development of a Multifunction Logistics Unit (MFLU) in Sydney’s West, following approval from the state Department of Planning.

Due for completion mid-2017, the $150 million investment is part of the Swedish furniture giant’s ‘transformation of Ikea in Australia,’ which includes plans for more stores and ‘pick up points’ for customers across the country.

“The new Ikea MFLU represents a significant milestone in our commitment to sustainable expansion in Australia,” said David Hood, Ikea Australia country manager. “Over the next few years, we want to create more opportunities for Ikea customers to access the brand in different ways and in new locations.”

“The Ikea Concept is about providing a range of well designed, functional home furnishing products that are affordable for the many people. Our new facility will enable us to continue to deliver on this promise and meet the growing demand for Ikea in Australia.”

At 70,000 square metres and with a capacity to store over 106 000 pallets, Ikea said the new MFLU will enable the furniture retailer to supply a greater range and volume of products to the nine stores in Australia by 2020.

The facility will be powered by 4000 solar panels, feature LED lighting throughout and harvest up to 500,000 litres of rainwater. It will also include translucent roof sheeting fixed with sensors to turn local lights off, when natural lighting levels are high enough and movement sensors for interior office lights.

In addition to the opening of the Ikea Marsden Park Store in May 2015, the MFLU signals the company’s ongoing commitment to job creation in Western Sydney. The new MFLU will be located on Sydney Business Park, close the Marsden Park Store, and will replace the company’s existing facility at Moorebank, creating an additional 50 jobs with the move, employing in total more than 150 co-workers.