Ocado has revealed that it has selected Andover, Hampshire, as the location for its third DC, as it looks to increase capacity nationwide.

Subject to planning permission, the grocery delivery firm hopes to begin building a DC in Andover, which will have the capacity to process 65,000 orders per week, in the final quarter of its current financial year.

In its half year accounts today, Ocado said the site will require an additional £30m investment, on top of the £100m to upgrade its distribution network and vehicles revealed earlier this year.

It also hopes to complete the expansion of its Dordon, Warwickshire, DC later this year, which will enable it to process 180,000 orders per week.

So far this year Ocado has spent £4.4m on replacing and adding to its fleet, the firm said, all of which have been taken out on five-year contracts.

Earlier this year the firm opened a site in Ruislip and it plans to open two more sites in Enfield and Sheffield in 2014, all of which will be shared with Morrisons as part of the contract it won with the supermarket last year.

CEO Tim Steiner said: “The successful launch of Morrisons.com was particularly encouraging and paves the way for future agreements to commercialise the value of our intellectual property.”

Ocado also operates a DC in Hatfield, Hertfordshire, of which 70% of its orders are delivered from.

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