Hundreds of jobs at new Ipswich mega-factory
HUNDREDS of jobs are expected after Coles announced it will build an automated mega-centre in Ipswich as part of a $950 million project.
Coles Group Limited revealed to the stock exchange it had executed plans to develop two new automated distribution centres on the eastern seaboard; including one at Redbank.
The grocery company's second distribution centre will be built at Kemps Creek in Western Sydney.
Together the projects are worth about $950 million over six years.
It is expected the new Redbank distribution centre, part of the Coles' Supply Chain Modernisation Project, will create hundreds of jobs over an initial 20-year lifespan.
The agreement at Redbank still requires development approvals from Ipswich City Council.
"The Queensland automated ambient distribution centre will be located at Weedman St, Redbank," a Coles spokesman said.
"The size of the distribution centre will be around 70,000sq m."
"We have chosen the location because of its strategic proximity to major road networks and their adjacency to major metropolitan markets.
"This means we can rapidly get our products on our supermarket shelves, improving product availability for our customers."
While new jobs will be created at Redbank, Coles will provide $146 million in its 2019 interim result for lease exit costs and redundancies for existing distribution centres.
The existing centres will be closed over a five-year period.
"With the signing of these important contracts, Coles is one step closer to implementing a key element of its supply chain modernisation strategy," Coles CEO Steven Cain said.
"This will provide a safer working environment for our team members, lower supply chain costs, enhance our overall business competitiveness and make life easier for our customers by having the right offer in the right location."