Amazon To Build A New $95 Million Distribution Center In China

Sites include Amazon.com . Published on February 2nd, 2012. Written by Anthony West.

Amazon is already heavily represented in Asia with distribution centers in various parts of India. But Amazon’s aspirations evidently stretch beyond India’s borders.

According to a report from a local Chinese newspaper, Amazon is looking to build a spanking new distribution center in the south-western city of Nanning. Amazon is reported to have inked a deal with the city’s Economic and Technological Development Zone valued at just over $95 million or the Yuan equivalent of 600 million. The 220,000 square meter complex will include an e-commerce center and Amazon is reportedly projecting returns of $31.5 million a year. At such a rate of return, Amazon’s payback for the investment will be just under 3 years.

From an job-creation perspective, the new distribution center will help around 1000 people in the area. But aside from that Amazon chosen site has wider trade and export benefits for its products. Nanning is actually bordered by Vietnam which provides excellent trade opportunities for the online retail giant.

It looks too that Amazon’s foray into the Chinese market will grow into something much larger. The company is reportedly looking at developing a localized version of its Kindle Fire tablet. If this happens, Amazon could end up competing with other big tech giants like Apple who already have several outlets in the country.