The Swedish home furnishings giant IKEA plans a new distribution center in Shanghai and seven new stores in China in the next five years.
The distribution center will be the chain's largest in the Asia Pacific region, Shanghai Daily reported. The center, scheduled to open in 2007, is expected to cost US$82 million to construct.
IKEA says the Shanghai center will be able to handle 60 containers of merchandise a day — twice the capacity of a distribution center in Malaysia that is currently the largest in the region.
The new stores include one scheduled to open in April in Beijing, that will replace a smaller existing store owned by a partnership. A new store is expected to open in Chengdu, Sichuan Province, in November.