The online grocer, Ocado, has announced it has exchanged contracts to acquire a 35.2 acre site at Birch Coppice Business Park, Dordon, North Warwickshire, on which it will construct a 350,000 sq ft Customer Fulfilment Centre (CFC).

The site will be the location for Ocado's second CFC doubling the potential capacity of the business.

At peak capacity, the CFC is expected to generate in excess of 2,000 jobs in the region, and will enable Ocado both to expand its geographic coverage and increase order capacity in its current coverage area where it is experiencing strong customer growth.

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Preparatory works will begin immediately and the CFC is expected to be able to commence operations at the end of 2012. It will have a capacity of approximately 120,000 orders per week at initiation of operations, increasing to approximately 180,000 orders per week. The expected total capital cost of the CFC is approximately £210 million.

Tim Steiner, Chief Executive Officer of Ocado, said: "We are delighted to have secured an outstanding site for our second CFC. 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 CFC will create over 2,000 jobs in the region. The Ocado team is looking forward to being a part of the local Dordon and Tamworth communities and becoming a major employer in the region."

(CD)