Kathmandu Holdings has announced plans for a new multi-million dollar national distribution centre in the Portlink Industrial Park in Christchurch.
The company will lease the new 5000sqm facility at Woolston near the company's head office, from property development company Arcus Developments.
It has expansion rights at the site.
Building will begin by the end of 2011 and will be completed in May 2012. The centre will be operational by July 2012.
"We did consider the option of an alternative warehousing facility in Auckland, but the board decided that Christchurch was a superior proposition," chief executive Peter Halkett said.
"The decision also reflects the Kathmandu board's belief in the economic future of Christchurch and its commitment to the company's heritage in Christchurch, where we have been trading for over 20 years,"
The current national distribution centre, which measures 3600 square metres, has reached capacity.
Arcus Developments chief executive David Moritmer said the distribution centre was the first major design build in the industrial park.
Mortimer said the park would be developed over 10 years and had the capacity to house 30 - 40 businesses.
- NZPA / Susie Nordqvist