US e-commerce giant Amazon is closing its circa 707,000-square-foot Rugeley fulfillment centre as part of plans to relocate to a £500 million facility in Birmingham's Sutton Coldfield.
The Lea Hall Way property, owned by Blackstone, has housed Amazon since August 2011 and was the UK's largest distribution warehouse when buiilt in 2009. But Amazon is planning to move to a new facility around 20 miles away as it looks more closely at improving the energy efficiency of its operation, calling it a "top priority".
Amazon will employ 1,400 at the Sutton Coldfield site, which is scheduled to open in October and has offered all 1,000 employees at the closing facility in Staffordshire the opportunity to relocate to its new premises or other Amazon sites.
Its new fulfillment centre will grow to recruit 2,000 people within three years, Amazon said. It comprises 547,000 square feet and is around 30% smaller than its current Rugeley warehouse, which will close, subject to consultation.
The new building will include three floors of Amazon Robotics where products will be stored and customer orders picked. It will also be fitted with solar panels on the roof and building management systems to reduce energy consumption.
Amazon’s regional director Neil Travis said: "The West Midlands is an important region for Amazon, and this new site will create 400 new jobs for this year, taking our total workforce in the West Midlands to more than 4,000 full and part-time roles, and our investment in the region to more than £3.2 billion since 2010.
"Amazon continues to invest in our buildings and innovative technology to provide our people with some of the most advanced workplaces of their kind in the world, ensuring their wellbeing while delivering for our customers."
Amazon's move comes as a time when many in the market are saying that secondary grade facilities will no longer cut the mustard for big name tenants, which demand properties with the highest environmental, social and corporate governance credentials to reduce their emissions but also reduce energy bills.
According to Amazon, it is the world’s largest corporate purchaser of renewable energy and is on a path to powering its operations with 100% renewable energy by 2025, five years ahead of the original target.
The group has invested over £56 billion in the UK since 2010.