National supermarket operator Foodstuffs Co-operative is to pump $45 million into the Christchurch economy with a major extension to its Hornby distribution facility.
The largest of its type in New Zealand, the 25,000 square metre building will be adjacent to its existing facility on a newly purchased 13 hectare site.
"This is a significant investment on our behalf, but that is the confidence we have in the South Island," said Steve Anderson, chief executive of Foodstuffs South Island. "We signalled back in 2005 that Papanui was too small and when we opened a new centre in Hornby in 2007 it was an obvious signal that this would be the site of future development.
"Hornby is now the distribution hub of the South Island due to its proximity to state highways north and south, the new Southern Motorway Project, plus the Port of Lyttelton," he said.
Anderson said he was confident that staff would retain their jobs.
"We want to future proof our entire distribution system for the next 25 years and this will allow us to do so", including more energy efficient lighting and heating and modern stacking systems.
Work is expected to commence late 2011 as the company works through the planning and consent stages with completion a year later.
Foodstuffs South Island head office will remain on the Papanui property but the distribution centre land will be subsequently sold.
Foodstuffs remains committed to its Dunedin distribution centre.
