The Volvo Group will build a 1-million-square-foot central parts distribution center in Byhalia, Miss., to support its Mack, Volvo and UD truck brands, as well as the Volvo Construction Equipment brand and Volvo Penta marine business.

The facility will employ about 250 people, and will serve as the center of the company’s North American parts distribution network. Construction is expected to be completed by the fourth quarter of the year.

The facility will be located a little to the southeast of Memphis, Tenn. The company will close the regional distribution center there when the one in Mississippi opens, according to published reports.

The new facility will be the central distribution center supporting primarily North American customers. However, its strategic proximity to logistics hubs will also allow for export to other regions, according to Volvo Group, and will significantly improve delivery performance and efficiency for dealers and customers.

“In addition to featuring the industry’s best logistics technologies and lean processes, we also intend for the new central distribution center to be energy efficient, by careful and innovative design of the building,” says Marcus Avenstam, project manager. “The improvement in our overall network will allow us to handle higher volumes much more efficiently, while simultaneously improving profitability.”

The Volvo Group is the Swedish parent to Volvo Trucks North America, which produces trucks and engines under the Volvo and Mack brands.