In its second-largest acquisition, Amazon buys the company for $970 million.
When the facility in Whitestown is open, Amazon will employ up to 1,200 workers full-time and several hundred more temporary workers during the holiday season. Amazon now operates more than a dozen centers.
Amazon.com will begin fitting out and occupying its second distribution center in Indiana this summer.
The company, No. 1 in the Internet Retailer Top 500 Guide, will operate a new 600,000-square-foot distribution center in Whitestown, a community situated about 20 miles north of Indianapolis. Late last year Amazon also opened a 75,000-square-foot fulfillment center in Munster in the northwestern part of the state.
When the new Whitestown facility is open, Amazon will have up to 1,200 full-time employees there and several hundred more temporary workers during the holiday season. “As Amazon continues to expand and offer more categories, it’s important that we have products close to where our customers live,” says Amazon vice president of North America fulfillment Mike McKenna. “The Whitestown facility will play an integral part in fulfilling current and future demand.”
The Indiana Economic Development Corp. and local governments granted Amazon about $2.5 million in job creation incentives to open the new facility, the state says.
Amazon now occupies more than a dozen regional fulfillment centers nationwide and is spending considerably more resources on its logistics and picking, packing and shipping operations. In 2007, Amazon spent 9% -- $1.3 billion -- of total sales on fulfillment. That compares with 9% -- $937 million -- in 2006.