US-based supermarket chain Kroger is investing $17m in its distribution centre in Florence, Kentucky, which is expected to create 250 jobs.

The investment will increase production at the 674,000ft2 facility, which currently employs 80 people.

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Kroger opened the distribution centre in October 2017 following a $60m investment to service its direct-to-store distribution centres across the eastern US, as well as the e-commerce and digital business.

Kroger supply chain and logistics vice-president Frank Bruni said: “This significant investment in the distribution facility and our associates will allow us to more efficiently reach our customers and help to deliver on new ways to shop with Kroger, as we redefine the grocery customer experience through Restock Kroger.

“We have long-appreciated the support from Boone County and the state of Kentucky, and look forward to growing together.”

The Kentucky Business Investment (KBI) programme is also supporting the project by offering an incentive of up to $1m over ten years.

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“Distribution and logistics is a thriving industry in the commonwealth, and this announcement is just the latest confirmation of that fact.”

Expansion of the staff working at the distribution facility will commence in September. The supermarket chain currently employs more than 21,000 associates in Kentucky.

Kentucky Governor Matt Bevin said: “It was less than a year ago that Kroger opened its distribution centre in Boone County and it is clear from this additional investment that the company recognises Northern Kentucky as the best possible location for further success and growth.

“Distribution and logistics is a thriving industry in the commonwealth, and this announcement is just the latest confirmation of that fact.

“We greatly appreciate Kroger’s confidence in the Northern Kentucky region and its ongoing commitment to investing and growing in our state.”

Headquartered in the US, the supermarket chain currently operates 2,779 retail food stores under various brands.