The Co-Operative Group is to build a £12m RDC on the Drum Road Industrial Estate in Birtley.
The multi-temperature warehouse will total 270,000 sq ft and is expected to be fully operational by the first half of 2009.
The D&B facility is being developed by Gladman and Rockpoint/Evander properties.
The scheme is part of plans to rejuvenate the retailer’s food distribution service to stores in the North East region, including Jarrow and South Shields.
The company already has a distribution operation in Blaydon, employing 234 people.