SuperValu-Centra Distribution, the retail division of Musgraves, is to create over 200 jobs at two transport and warehousing operations in Cork and Dublin.
Musgraves owns the SuperValu and Centra franchises and services the 426 independently-owned SuperValu and Centra stores in the Republic. The company is investing £20.5 million in the project. The jobs will be for drivers and warehouse personnel.
Over half the jobs will be at the company's new 70,000-square foot chill warehouse and distribution centre on a 15-acre site at Lucan, Co Dublin.
The other employees will work at the existing computerised warehouse centre at Tramore Road, Co Cork, where 50,000 extra square feet of chill and fresh food warehousing space is being developed.
"This is a huge project and a first for this country, we are establishing a facility to create cost-efficiencies and improve service to the independent retail stores in the SuperValu and Centra groups," said Mr Eric Curtis, director of SuperValu-Centra Distribution.
SuperValue-Centra Distribution currently services 188 SuperValu supermarkets and 238 Centra outlets in the Republic. The independent retailers who make up the two groups now service close to 20 per cent of the total grocery market in the Republic.
The company will run its own fleet of up to 60 special chill vans to service the outlets. Musgraves is investing £18.5 million on buildings and equipment and £2 million on a computer software package to manage the logistics of the operation.
According to a spokesman, cost efficiencies will "ultimately" be passed on to customers, with price advantages on many lines of fresh, chill and frozen foods.