Costco Wholesale Corp will set up a logistics and distribution center in Taoyuan County at the end of next year, a move expected to significantly cut its cost of distribution, which is currently being outsourced, a county official said yesterday.
After factoring in the Taoyuan Aerotropolis development project and Taoyuan County’s geographic location, Costco decided to set up the center there to facilitate the distribution of products to its various branches nationwide, the official from the county’s Economic Development Department said.
Costco, the largest membership warehouse club chain in the US, expects to invest NT$800 million (US$24.8 million) in the center and two new big box outlets in northern and southern Taoyuan.
Ahmen Lee (李伯孟), Costco Taiwan’s regional marketing manager, confirmed the project earlier yesterday and said Costco decided to locate the center in Taoyuan because it was a very important market in Taiwan and home of the Taiwan Taoyuan International Airport.
The planned logistics center, to cover an estimated 49,600m², will be located in Dayuan Township (大園). The two Costco branches to be set up in the county at yet-to-be finalized locations will allow local Costco members to shop only a short distance from their homes, rather than needing to travel to outlets in Taipei or Hsinchu as they do now, Lee said.
This is the first large-scale investment project in the county to be announced since Taoyuan County Commissioner John Wu (吳志揚) assumed his post earlier this month, the official said, adding that it should help stimulate the development of related industries.
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