Online grocer Ocado today said its second customer fulfillment centre was set to open in late 2012 - potentially doubling the size of the business' capacity.
The site, in Dordon, North Warwickshire, will allow Ocado to widen the geographical area it delivers to - its heartland is currently in the South East, but this centre should allow that to widen further north and in the Midlands - and to deliver more orders to the area it already covers.
At peak capacity the new centre is expected to create more than 2,000 new jobs and is set to deliver an initial 120,000 orders a week when it opens in late 2012, rising to 180,000.
Ocado will pay an initial £17.74m for the 35.2 acre site, on which it has already exchanged contracts and will have a 999-year lease, but says the total capital costs of developing the site are likely to come to £210m. The company already has outline planning permission for the site.
Ocado chief executive Tim Steiner said: "Ocado is growing rapidly across the country and this location ensures we will have capacity to provide more customers with the leading online grocery offering.
"Upon completion, the new customer fulfillment centre will create over 2,000 jobs in the region."
"This is great news for jobs and for the economy as a whole. Ocado is a classic example of how a well run small business can grow and become a real leader in its market."
The news has been welcomed by the Government. Business minister Mark Prisk said: "This is great news for jobs and for the economy as a whole. Ocado is a classic example of how a well run small business can grow and become a real leader in its market."
The announcement fulfills Ocado's pledge on floating earlier this year to invest in expanding its distribution operations.