Ocado expansion to deliver 2,000 new jobs

A 35.2-acre site at Dordon in North Warwickshire will double the potential capacity of the business, which recently listed on the London Stock Exchange with a value of just under 1 billion at the time.

The centre will enable the firm to expand its coverage as well as increase order capacity in its delivery heartland in southern England. The business carries more than 20,000 product lines, including Waitrose and John Lewis-branded goods, alongside a growing own-label range.

Ocado, which currently runs its distribution operation from Hatfield, said preparatory works will start immediately, with the warehouse expected to commence operations at the end of 2012. It will have an initial capacity of 120,000 orders per week, with the potential to rise to 180,000 orders.

At its peak, the site is expected to generate in excess of 2,000 jobs in the region.

Co-founder and 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 operation."

The development of a second distribution site, which is expected to cost 210 million, is in line with guidance at the time of the company's flotation in July. Shares in Ocado have put in a mixed performance since then.