Construction has started on Volvo Group’s new 91,245 sq ft regional distribution centre at SEGRO Park Coventry.
Glencar has been appointed by SEGRO to design and build Unit 3C, which is scheduled for completion in January 2027.
The project is the third Glencar has undertaken for SEGRO, extending the companies’ work together in the industrial and logistics market.
Volvo Group has pre-let the facility as part of a £24m investment in its UK and Ireland parts-distribution network.
Once operational, the centre is expected to process more than 1.3 million order lines each year.
An automated storage and picking system will be installed to accelerate parts handling and improve distribution across Volvo Group’s UK and Ireland operations.
Sabrina Loyer, general manager for service operations and technology at Volvo Group UK, said: “The move to Coventry represents a significant investment in the future of our parts distribution network and a key milestone in supporting Volvo Group UK's continued growth.”
She said the business needed greater capacity and flexibility as customer expectations and operational demands continued to evolve.
The building will include a warehouse with a clear height of 12 metres and integrated two-storey office accommodation.
Glencar will also deliver service yards, underground utilities, drainage, landscaping and wider infrastructure.
The external works will include cement-stabilised earthworks, mass-fill foundations and a petrol interceptor.
EV-enabled car parking and a rainwater-harvesting system will also form part of the development.
Unit 3C is designed to achieve a BREEAM Excellent rating and an EPC A energy-performance certificate.
Photovoltaic panels, electric vehicle charging points and energy-efficient building systems will be incorporated to reduce its environmental impact.
Chris Looney, construction director at Glencar, said: “We're pleased to be working with SEGRO once again on another important industrial development.”
He said the third project reflected the strength of the relationship between the two companies and their focus on delivering modern industrial, manufacturing and logistics facilities.
“Unit 3C will provide Volvo Group with a purpose-built, sustainable facility in a strategically important location, and we look forward to working collaboratively with SEGRO and the wider project team to successfully deliver the project for completion in January 2027,” he added.
SEGRO Park Coventry is a 215-acre industrial and logistics development situated south of Coventry Airport.
The wider site has outline planning permission for up to 3.7 million sq ft of space for manufacturing, distribution and warehousing businesses.
Plans for the development also include about 100 hectares of community parkland, woodland walks, wetlands and landscaped public space.
SEGRO said these features were intended to support biodiversity, sustainability and the wellbeing of people working at the site.