China's JD.com starts operations in $1 billion warehouse, land push
BEIJING (Reuters) - Chinese e-commerce giant JD.com Inc said it had launched its warehouse and logistics initiative, ahead of China's biggest online shopping event which produced sales of $1.6 billion (993.58 million pounds) for the firm last year.
The initiative is part of a $1 billion push to expand storage and processing facilities in China, where JD.com presently operates 7 fulfilment centres and 97 warehouses in 39 cities.
A Shanghai warehouse has started operations as part of the initiative, the firm said in a statement. The facility eventually will be able to sort 16,000 packages an hour.
It will help process orders during next month's Singles' Day shopping event, which begins November 1 and generates a huge spike in online shopping as people buy gifts for single friends.
"This cutting-edge, highly automated and efficient warehouse significantly expands JD.com's ability to provide same-day and next-day delivery via our last-mile delivery network, even during peak periods," JD.com CEO Richard Liu said in a statement.
The company, which raised $1.78 billion on the Nasdaq in May, said in its IPO document that it would spend between $1 billion to $1.2 billion over the next 3 years to expand fulfilment infrastructure.
JD.com's share price closed Friday at $25.07. The stock has gained about 20 percent since its listing.
(Reporting by Matthew Miller; Editing by Stephen Coates)
