Cotton On has announced a joint $40 million investment into the construction of a world-class distribution centre at Avalon Airport, Geelong.
The project is in partnership with Avalon Airport and the Victoria State Government.
With one of the fastest supply chains in the world, the existing Victorian distribution centre at Lara processes 130,000 products per day.
The new 35,000 square metre facility will be able to process 300,000 products per day.
The centre will be purpose-built to serve as a hub for stock distribution to Cotton On's network of seven brands in over 778 stores within Australia.
The deal will also see Cotton On become the anchor tenant in a new 40-hectare industrial precinct.
Cotton On Group CFO Michael Hardwick said the size of the centre and technologies used will increase efficiencies.
He said despite its ability to keep pace with current demand, the existing facility is not equipped to cope with growth predictions.
The new facility has the capacity to grow in a dynamic and adaptable way though automation and expansion, to support the Group’s planned growth.
“We are incredibly proud of our Geelong heritage and the contribution we have been able to make to the Geelong community over the last 25 years," he said.
"We are thrilled to be part of the development of the new industrial precinct at Avalon Airport.”
The project is expected to be completed by mid-2018.