Woolworths will use the facility to deliver fresh produce across South Australia. Credit: Bidgee / Wikipedia.

Australian supermarket chain Woolworths has commenced the construction of a $57m expansion project at its Adelaide Regional Distribution Centre (ARDC).

The retailer has partnered with privately-owned construction firm Hutchinson Builders and local businesses to work on the project. Around 140 local jobs are likely to be created in the region throughout the construction.

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The project will expand the ARDC facility to 94,000m², as well as increase capacity temperature control and ambient warehouse sections of the Gepps Cross site.

Woolworths will also invest $2.5m to install 3,500 solar panels across the rooftop to power the expanded distribution centre.

As part of the project, the facility will also feature an expanded recycling facility for pallets to complement the retailer’s efforts to reduce plastics and cardboard within its supply chain.

“The site’s proximity to the Adelaide markets has always been a strength, but this upgrade will allow for more frequent and faster deliveries to our stores.”

Woolworths chief supply chain officer Paul Graham said: “This $57m expansion of our Adelaide DC forms a key part of our ambition to create a best in class supply chain network for our customers.

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“The site’s proximity to the Adelaide markets has always been a strength, but this upgrade will allow for more frequent and faster deliveries to our stores to help fulfil our fresh food promise.

“We partner with dozens of local suppliers in South Australia, connecting products from growing regions including the Northern Adelaide Plain, South Murraylands, Riverland, Mallee, the Lime Coast and Adelaide Hills, to our customers.”

Following the completion of the construction, the company will use the facility to strengthen its seven-day-a-week delivery programme to deliver fresh produce to communities across South Australia and the Northern Territory by mid-2020.

Growthpoint Properties, landowner of the ADRC, will fund the expansion of the ARDC under a new 15-year lease over the entire distribution centre.