The Co-operative Group has opened a distribution centre in Scotland to service its stores in the country and in Northern Ireland.

The UK retailer said yesterday (26 July) that it has invested GBP25m (US$41m) in the 503,000 square foot, multi-temperature Newhouse depot. It is now ramping up and will be fully operational by September when it will employ 1,000 staff.

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The site will serve 618 stores in Scotland and Northern Ireland with an output of 60m cases a year and will operate a fleet of 370 lorries and 140 fork-lift trucks and low level order pickers.

The depot will replace The Co-op’s existing distribution operations in Piteavie, which closed earlier this year, and Cumbernauld and Harthill, which will close before the end of 2011. The Co-op said it is hoped “as many staff as possible” from these sites will transfer to Newhouse.

The retailer said the distribution centre in Newhouse is part of a major overhaul of its food logistics network following its acquisition of Somerfield in 2009. The Co-op said the overhaul aims to upgrade the existing facilities, improve supply chain performance and help create a “platform for a superior store service”.

“Newhouse is an excellent location to serve our stores across Scotland and Northern Ireland and is the latest major investment in our logistics network, said chief executive Peter Marks. “Our new regional distribution centre is also a major investment in and commitment to the local community and will not only provide major employment locally but will also help further boost the local economy for many years to come.”

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The site features a number of energy-saving and recycling initiatives and will receive both rail and road freight.

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