H-E-B Plans to Build its Largest Distribution Center in San Antonio

H-E-B plans to build its largest manufacturing and distribution center with a cost of more than $130 million and is expected to create 300 new jobs over five years.

According to a report from the San Antonio Express-News, the project site is 871 acres and will be located on the corner of East Houston Street and South Foster Road in San Antonio. The 1 million-square-foot distribution center will be the company’s largest single-build warehouse.

“We are always evaluating the need for changes across our operations to help maintain a competitive advantage. The investment demonstrates H-E-B’s commitment to the San Antonio community and will give us the opportunity to create more jobs in the Alamo City in the coming years,” said Dya Campos, H-E-B Director of Public Affairs.

H-E-B no longer had room to expand its preexisting San Antonio distribution and manufacturing facilities—located on a 70-acre plot along Interstate 35, Campos explained to the San Antonio Express-News.

The City Council is set to vote on May 17th on whether to waive up to $1 million in development fees and up to $500,000 in San Antonio Water System water and sewer impact fees. According to a city council agenda memo, the new distribution center is also expected to create $8 million in property tax revenue over the next 10 years.

H-E-B becomes the largest privately held employer in Texas

Construction is set to begin later this year and should be completed in late 2019. The warehouse is expected to be operating sometime in 2020.

H-E-B, one of the nation’s leading independent food retailers and the largest private employer in Texas with sales of $25 billion, operates 400 stores in Texas and Mexico.

Based in San Antonio, the company celebrates its 113th anniversary in 2018. The company employs over 106,000 workers in Texas and Mexico and serves millions of customers in more than 300 communities. The grocery store chain which was valued at $10.7 billion by Forbes, is owned by the Charles Butt family, the 23rd wealthiest in the U.S.