Asda has begun work on a GBP70m (US$105.6m) chilled and frozen food depot in the south west of England, after receiving planning permission from local authorities.

A 485,000-square-foot temperature controlled warehouse and a 131,000-square-foot service centre will be built on a 50-acre site in Avonmouth, near Bristol, Asda said this week.

The site will replace Asda’s existing facility in the area has been designed to incorporate a recycling centre, as well as energy saving technology, the Wal-Mart-owned retailer said.

“This is an exciting opportunity to support our future growth in the south west,” said Ant Everett, head of network development for Asda distribution.

The new Avonmouth depot is expected to be operational in time for Christmas trading and is expected to supply 123 stores. Asda has around 500 stores across the UK.