Online giant to expand its presence in Maryland
Amazon is once again bolstering its distribution fleet in the Old Line state.
The online giant is opening an 855,000-sq.-ft. facility in Baltimore’s Sparrow Point district. This will be Amazon’s fourth fulfillment facility in the state.
The new building will create more than 1,500 full-time positions. These employees will augment more than 5,000 associates that work at Amazon’s sortation center, which is co-located with its Prime Now hub, and a fulfillment center in Baltimore, and another fulfillment center in North East, Maryland. When the new facility opens, all four buildings will comprise a total of 3.3 million total sq. ft.
The new distribution center is expected to open in 2019, according to The Baltimore Sun.
Over the past two years, Amazon has invested millions of dollars into its local fulfillment center infrastructure and through compensation to thousands of employees in the state. Between 2014 and 2016, Amazon’s investments in Maryland contributed an additional $100 million into the state’s economy, the online retailer said.
These existing buildings are also energy efficient, as more than 11,500 solar panels are installed on the rooftops of the Baltimore fulfillment facilities, a move that generates more than 3.5MW of combined peak power. Amazon’s rooftop solar projects typically reduce the amount of electricity the site draws from the utility each year by 30%, according to the company.
Amazon did not reveal if the new building will also feature solar panels.
“We’re excited to open a new, state-of-the-art fulfillment center in historic Sparrows Point and to continue innovating in a state committed to providing great opportunities for jobs and customer experience,” said Sanjay Shah, Amazon’s VP of North America Customer Fulfillment.
Baltimore is also among the more than 200 bids that Amazon received from cities and regions in 54 states, provinces, districts and territories across North America, all eager for the opportunity to be considered to host the online giant’s second North American headquarters. The online giant is referring to this new headquarters as “HQ2.”
Amazon will announce its decision next year.
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Home furnishings retailer strengthens distribution network
Ikea is bolstering its fleet of customer fulfillment centers with two new buildings.
The retailer leased two facilities in Baytown, Texas and American Canyon, California. The warehouses will focus on delivering items to customers who order products online or purchase larger items at a store.
The 1 million-sq.-ft. space in Baytown is comprised of two buildings located 30 miles east of downtown Houston. The building, which opened earlier this year, is the fourth Ikea location in Texas, in addition to three stores. Three more Texas stores are currently being constructed, according to Ikea.
In American Canyon, the 646,000-sq.-ft. facility is part of Napa Logistics Park developed by DivcoWest and Orchard Partners — a property located 34 miles north of the Port of Oakland. The location, which will open in early 2018, is the tenth Ikea location in California, augmenting eight stores and a regional distribution center.
Each building will create approximately 200 jobs, according to Ikea.
“As we expand across the country and grow our online presence, we want to ensure we have sufficient warehouse capacity to support the efficient and timely delivery and shipment of products to our customers,” said Lars Petersson, Ikea U.S. president. “Our goal is to increase accessibility to the Ikea product selection, and these two fulfillment centers will help us meet the home furnishing needs of many American customers.”
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